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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 arises by law because of the circumstances of a sale - rather than by the seller's express promise.






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






3. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.






4. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






5. 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.






6. A set of policies or procedures affecting the way a corporation is directed or controlled.






7. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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






9. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






10. 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.






11. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






12. 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






13. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






14. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






15. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






16. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






17. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






18. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






19. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






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






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






22. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






23. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






24. The passing of title to property from the seller to the buyer for a price.






25. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






26. Goods that conform to contract specifications.






27. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






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






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. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






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






32. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






33. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.






34. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






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






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






37. 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.






38. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






39. The act of accepting and giving legal force to an obligation that previously was not enforceable.






40. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






41. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






42. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






43. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






44. In the context of real property - an interest in land that does not include any right to possess the property.






45. The act of accepting and giving legal force to an obligation that previously was not enforceable.






46. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






47. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






48. 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.






49. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






50. 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