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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 check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






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






3. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.






4. An implied promise by a landlord that rented residential premises are fit for human habitation






5. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






6. Moral principles and values applied to social behavior.






7. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






8. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






9. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






10. A revocable right or privilege of a person to come onto another person's land.






11. 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.






12. 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.






13. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






14. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






15. A state law providing that employees may not be required to join a union as a condition of retaining employment.






16. A writ from a higher court asking the lower court for the record of a case.






17. 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.






18. 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






19. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






20. 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.






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






22. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






23. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






24. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






25. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






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






27. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






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






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






30. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.






31. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w






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






33. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






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. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






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






37. 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.






38. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






39. A public official authorized to attest to the authenticity of signatures.






40. 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






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






42. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






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






44. The use of an asset that is not the subject of a loan to collateralize that loan.






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






46. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






47. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






48. 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.






49. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






50. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.