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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 contract that by law requires a specific form - such as being executed under seal - for its validity.






2. 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.






3. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






4. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






5. 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.






6. 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.






7. A party to whom the rights under a contract are transferred - or assigned.






8. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






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






10. 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






11. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






12. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.






13. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






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






15. 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.






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






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






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






19. 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.






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






21. 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.






22. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






23. 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






24. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






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






26. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






27. 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.






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






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






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






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






32. A person to whom an offer is made.






33. 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






34. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






35. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






36. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






37. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






38. 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.






39. 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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40. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.






41. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






42. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a






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






44. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






45. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






46. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






47. The process of resolving a dispute through the court system.






48. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






49. A person on the board of directors who does not hold a management position at the corporation.






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