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Business Law Fundamentals

Subjects : law, business-law
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






2. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






3. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






4. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






5. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






6. A check - other than a certified check - that is presented for payment more than six months after its date.






7. The passing of title to property from the seller to the buyer for a price.






8. An equitable remedy requiring exactly the performance that was specified; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique.






9. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






10. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






11. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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12. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






13. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






14. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






15. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






16. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






17. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






18. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.






19. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






20. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






21. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






22. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






23. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






24. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






25. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






26. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






27. A tax on imported goods.






28. The process of proving and validating a will and settling all matters pertaining to an estate.






29. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






30. A contract that is formed electronically.






31. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






32. A formal legal document prepared by a party's attorney and submitted to an appellate court when a case is appealed - which outlines the facts and issues of the case that are in dispute.






33. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






34. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201






35. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






36. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






37. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






38. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






39. Generally - the value given in return for a promise; involves two elements






40. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






41. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






42. Procedurally - a plaintiff's response to a defendant's answer.






43. The creation of an absolute or unconditional right or power.






44. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






45. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






46. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






47. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






48. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






49. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






50. One for whose benefit a promise is made in a contract but who is not a party to the contract.