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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. 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






2. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






3. A contract between an employer and an employee in which the terms and conditions of employment are stated.






4. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






5. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






6. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






7. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






8. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






9. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






10. The act of transferring to another all or part of one's duties arising under a contract.






11. Ownership rights in property - including the right to possess and control the property.






12. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






13. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






14. The act of stealing another's identifying information






15. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






16. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






17. Charging an illegal rate of interest.






18. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






19. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






20. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






21. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






22. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






23. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






24. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.






25. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






26. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






27. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






28. A person who makes an offer.






29. Information or processes that give a business an advantage over competitors that do not know the information or processes.






30. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






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






32. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






33. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






34. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






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






36. An implied promise by a landlord that rented residential premises are fit for human habitation






37. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






38. The goods and services that domestic firms sell to buyers located in other countries.






39. Any bank handling an item for collection - except the payor bank.






40. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued






41. A will written entirely in the signer's handwriting and usually not witnessed.






42. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






43. One who entrusts goods to a bailee.






44. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






45. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






46. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






47. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






48. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






49. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






50. 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