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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 use of an asset that is not the subject of a loan to collateralize that loan.






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






3. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






4. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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5. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






6. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






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






8. A contract between the issuer of a bond and the bondholder.






9. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






10. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






11. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






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






13. 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.






14. The authority of a court to hear and decide a specific case.






15. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






16. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






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






18. Any interest in personal property or fixtures that secures payment or performance of an obligation.






19. The act of accepting and giving legal force to an obligation that previously was not enforceable.






20. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






21. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f






22. Joint ownership.






23. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






24. A gift of personal property by will (from the verb to bequeath).






25. Property with which the owner has voluntarily parted and then cannot find or recover.






26. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






27. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






28. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






29. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






30. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






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






32. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






33. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






34. 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.






35. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






36. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






37. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






38. A landlord's act of depriving a tenant of possession of the leased premises.






39. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






40. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






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






42. The relationship that exists between the promisor and the promisee of a contract.






43. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






44. 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.






45. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






46. State laws that regulate the offering and sale of securities.






47. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






48. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






49. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






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