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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. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.






2. 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.






3. A check drawn by a bank on itself.

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4. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






5. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






6. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






7. A contract having no legal force or binding effect.






8. 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.






9. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






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






11. Land and everything attached to it - such as trees and buildings.






12. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






13. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






14. The process of proving and validating a will and settling all matters pertaining to an estate.






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






16. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






17. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






18. One who owes an obligation to another.






19. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






20. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






21. The act of transferring to another all or part of one's rights arising under a contract.






22. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






23. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






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






25. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






26. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






27. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






28. 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






29. The term used to designate a person who has an ownership interest in a limited liability company.






30. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






31. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






32. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






33. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






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






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






36. 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.






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






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






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






41. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






42. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.






43. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.






44. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






45. 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






46. A tax on imported goods.






47. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






48. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






49. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






50. Within a specified time period or - if no period is specified - within a reasonable time.