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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 party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






2. An equity (ownership) interest in a corporation - measured in units of shares.






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






4. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






5. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).






6. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






7. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






8. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






9. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






10. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






11. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






12. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.






13. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






14. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






15. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






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






17. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






18. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






19. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






20. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






21. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






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






23. A trademark in cyberspace.






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






26. An action to carry into effect the directions in a court decree or judgment.






27. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






28. A valid contract rendered unenforceable by some statute or law.






29. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






30. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






31. A person on the board of directors who is also an officer of the corporation.






32. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






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






34. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






35. The image and overall appearance of a product






36. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






37. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






38. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






39. Reasonable grounds for believing that a person should be arrested or searched.






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






41. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






42. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






43. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






44. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






45. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






46. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






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






48. A public official authorized to attest to the authenticity of signatures.






49. A revocable right or privilege of a person to come onto another person's land.






50. 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