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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).
mortgage
implied warranty
power of attorney
purchase-money security interest (PMSI)
2. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.
imposter
voir dire
life estate
grand jury
3. Reasonable grounds for believing that a person should be arrested or searched.
past consideration
shipment contract
probable cause
hot-cargo agreement
4. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with
information return
bequest
debtor in possession (DIP)
fungible goods
5. A set of policies or procedures affecting the way a corporation is directed or controlled.
arson
corporate governance
partnership
promissory estoppel
6. The idea that corporations can and should act ethically and be accountable to society for their actions.
motion for judgment n.o.v.
Totten trust
franchisor
corporate social responsibility
7. 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.
charitable trust
workers' compensation laws
backdating
default judgment
8. 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.
categorical imperative
quitclaim deed
bailee
rescission
9. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea
executory contract
consequential damages
partnership
protected class
10. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.
generally accepted auditing standards (GAAS)
record
preference
risk management
11. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.
ethics
e-evidence
motion to dismiss
justiciable controversy
12. Procedurally - a defendant's response to the plaintiff's complaint.
consumer-debtor
prima facie case
answer
red herring prospectus
13. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.
collateral promise
tenancy at will
Totten trust
objective theory of contracts
14. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.
hot-cargo agreement
probate court
promisor
incidental damages
15. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
condition
affirmative action
duress
S corporation
16. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
reformation
distributed network
click-on agreement
surety
17. 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.
act of state doctrine
corporate governance
small claims court
patent
18. State laws that regulate the offering and sale of securities.
usage of trade
lease agreement
tenancy at will
blue sky laws
19. The authority of a court to hear and decide a specific case.
articles of organization
cram-down provision
integrated contract
jurisdiction
20. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.
commercial impracticability
policy
retained earnings
good faith purchaser
21. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).
alienation
trust
bylaws
cybersquatting
22. A contract in which one party forfeits the right to pursue a legal claim against the other party.
release
intellectual property
draft
per capita
23. 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.
generally accepted auditing standards (GAAS)
whistleblowing
incidental beneficiary
joint and several liability
24. 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.
mirror image rule
policy
mediation
arson
25. 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.
security interest
sale
unreasonably dangerous product
tangible property
26. 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
double jeopardy
pleadings
insurable interest
working papers
27. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.
voidable contract
accord and satisfaction
power of attorney
stock options
28. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.
right of reimbursement
common stock
special warranty deed
specific performance
29. A contract in which the terms of the agreement are stated in words - oral or written.
grand jury
holder in due course (HDC)
express contract
investment company
30. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
misdemeanor
international organization
firm offer
lessor
31. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.
license
corporate governance
stale check
tariff
32. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
moral minimum
preferred creditor
collecting bank
will substitutes
33. 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.
takeover
lost property
devisee
right of contribution
34. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).
insider trading
license
insurable interest
constructive trust
35. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib
short-form merger
limited partner
cashier's check
concurrent ownership
36. All forms of personal property.
chattel
double jeopardy
generally accepted accounting principles (GAAP)
consideration
37. 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.
debtor in possession (DIP)
tenancy at will
counteroffer
identity theft
38. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.
foreign corporation
alternative dispute resolution (ADR)
breach of contract
shareholder's derivative suit
39. A contract that has been completely performed by both parties.
S corporation
intended beneficiary
executed contract
lost property
40. 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.
levy
summons
workers' compensation laws
employment contract
41. A document by which title to property (usually real property) is passed.
extension clause
arson
deed
formal contract
42. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.
sovereign immunity
trade dress
motion for a directed verdict
liquidation
43. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.
e-signature
self-defense
destination contract
testate
44. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
corporate governance
undisclosed principal
abandoned property
forgery
45. A tax on imported goods.
tariff
cashier's check
frustration of purpose
per capita
46. The use of an asset that is not the subject of a loan to collateralize that loan.
fixed-term tenancy
cross-collateralization
U.S. trustee
information return
47. The act of accepting and giving legal force to an obligation that previously was not enforceable.
obligor
shrink-wrap agreement
sole proprietorship
ratification
48. 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.
tariff
investment contract
reaffirmation agreement
Statute of Frauds
49. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.
motion for a new trial
testamentary trust
secured party
deficiency judgment
50. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.
consignment
mortgagee
right of subrogation
bailee