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Business Law Fundamentals

Subjects : law, business-law
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. 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.

2. 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

3. 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

4. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).

5. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.

6. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.

7. 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.

8. 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

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

10. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t

11. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.

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

13. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.

14. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.

15. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.

16. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a

17. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.

18. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.

19. A crime

20. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].

21. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.

22. A state statute under which certain types of contracts must be in writing to be enforceable.

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

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

25. 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 -

26. A contract that has been completely performed by both parties.

27. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.

28. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.

29. Law that pertains to a particular nation (as opposed to international law).

30. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.

31. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.

32. 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

33. A party that holds a lien that is subordinate to one or more other liens on the same property.

34. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.

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

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

37. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w

38. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.

39. A party to whom contractual obligations are transferred - or delegated.

40. A gift of personal property under a will.

41. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.

42. The power of a government to take land from private citizens for public use on the payment of just compensation.

43. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.

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

45. One who owes an obligation to another.

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

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

48. An employer's termination of an employee's employment in violation of the law.

49. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.

50. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim