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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 common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






2. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






3. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






4. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






5. 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






6. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued






7. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






8. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






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






10. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






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






12. A valid contract rendered unenforceable by some statute or law.






13. The act of stealing another's identifying information






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






15. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.






16. 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.






17. A trust that is created by will and therefore does not take effect until the death of the testator.






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






19. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






20. 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






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. 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






23. 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.






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






25. 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.






26. 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.






27. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






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






29. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






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






31. 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.






32. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






33. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






34. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






35. One to whom goods are entrusted by a bailor.






36. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






37. 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.






38. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






39. A contract that has not as yet been fully performed.






40. A check drawn by a bank on itself.

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






42. 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.






43. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






44. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






45. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.






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






47. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






48. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






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






50. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.