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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 warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil






2. Property that is acquired by the debtor after the execution of a security agreement.






3. Procedurally - a defendant's response to the plaintiff's complaint.






4. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.






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






6. The power of a government to take land from private citizens for public use on the payment of just compensation.






7. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






8. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.






9. 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






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






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






12. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






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






14. 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.






15. An equity (ownership) interest in a corporation - measured in units of shares.






16. 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.






17. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






18. Property resulting from intellectual - creative processes.






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






20. 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






21. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






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






23. 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.






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






25. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






26. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'






27. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






28. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






29. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






30. 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.






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






32. A contract that does not require a specified form or formality to be valid.






33. 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.






34. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






35. An action to carry into effect the directions in a court decree or judgment.






36. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






37. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






38. 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






39. A worldwide system in which foreign currencies are bought and sold.






40. A person to whom an instrument is made payable.






41. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






42. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






43. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






44. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






45. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.






46. A contract between the issuer of a bond and the bondholder.






47. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be






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






49. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.






50. 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