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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 contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






2. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






3. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






4. In a given state - a corporation that does business in - and is organized under the law of - that state.






5. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.






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






7. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






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






9. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.






10. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






11. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






12. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






13. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






14. A provision in a contract stipulating that certain unforeseen events






15. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






16. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






17. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






18. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






19. Joint ownership.






20. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






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






22. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






23. The number of members of a decision-making body that must be present before business may be transacted.






24. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






25. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






26. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






27. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






28. All forms of personal property.






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






30. 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






31. A crime committed on the Internet.






32. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






33. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






34. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






35. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






36. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






37. A contract in which one party forfeits the right to pursue a legal claim against the other party.






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






39. 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.






40. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






41. 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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42. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






43. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






44. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






45. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.






46. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






47. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






48. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






49. Charging an illegal rate of interest.






50. Property with which the owner has involuntarily parted and then cannot find or recover.