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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 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.






2. A set of policies or procedures affecting the way a corporation is directed or controlled.






3. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






4. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






5. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






6. A legally recognized authority that can certify the validity of digital signatures.






7. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






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






9. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






10. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






11. A type of limited liability partnership owned by family members or fiduciaries of family members.






12. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






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






14. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.






15. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






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






17. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






18. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






19. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






20. In a sale of goods - the express designation of the goods provided for in the contract.






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






22. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






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






24. One for whose benefit a promise is made in a contract but who is not a party to the contract.






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






26. 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.






27. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






28. 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






29. A person to whom a promise is made.






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






31. The first bank to receive a check for payment.






32. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






33. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






34. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein






35. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






36. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






37. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






38. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






39. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






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






41. The act of refraining from an action that one has a legal right to undertake.






42. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






43. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






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






45. One who owes an obligation to another.






46. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






47. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






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






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






50. 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