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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. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






2. 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






3. 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






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






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






6. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






7. The document filed with a designated state official by which a limited liability company is formed.






8. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






9. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






10. 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.






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






13. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.






14. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






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






16. A contract in which the terms of the agreement are stated in words - oral or written.






17. 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






18. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






19. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






20. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






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






22. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






23. 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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24. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






25. One who owes an obligation to another.






26. 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.






27. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






28. The image and overall appearance of a product






29. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






30. The creation of an absolute or unconditional right or power.






31. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






32. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






33. 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






34. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






35. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






36. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






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 transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






39. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






40. 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.






41. 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






42. A person who makes a promise.






43. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






44. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






45. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






46. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






47. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






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






49. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






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