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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 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.






2. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






3. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






4. A party that holds a lien that is subordinate to one or more other liens on the same property.






5. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






6. The creation of an absolute or unconditional right or power.






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






8. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






9. 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.






10. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f






11. A document by which title to property (usually real property) is passed.






12. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






13. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






14. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






15. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






16. 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.






17. The idea that corporations can and should act ethically and be accountable to society for their actions.






18. An assertion that something either will or will not happen in the future.






19. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






20. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






21. 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.






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






23. Any voluntary transfer of property made without consideration - past or present.






24. A person who receives inside information.






25. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






26. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






27. The goods and services that domestic firms sell to buyers located in other countries.






28. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






29. 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






30. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






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






32. 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.






33. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






34. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio






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






36. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






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






38. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.






39. Joint ownership.






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






41. 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.






42. The bank on which a check is drawn (the drawee bank).






43. A state statute under which certain types of contracts must be in writing to be enforceable.






44. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






45. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






46. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






47. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






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. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






50. 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.







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