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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 union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d






2. Goods that conform to contract specifications.






3. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






4. 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).






5. 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.






6. Reasonable grounds for believing that a person should be arrested or searched.






7. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






8. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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9. 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






10. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






11. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






12. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






13. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






14. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con






15. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






16. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






17. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






18. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






19. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






20. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.






21. 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).






22. One designated in a will to receive a gift of real property.






23. A person on the board of directors who is also an officer of the corporation.






24. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






25. Law that pertains to a particular nation (as opposed to international law).






26. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






27. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






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






29. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






30. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






31. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






32. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






33. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.






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






35. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






36. Any interest in personal property or fixtures that secures payment or performance of an obligation.






37. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






38. Property resulting from intellectual - creative processes.






39. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






40. A person in possession of an instrument payable to bearer or indorsed in blank.






41. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






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






43. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






44. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






45. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






46. The process of proving and validating a will and settling all matters pertaining to an estate.






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






48. A designation in the United States for a corporation formed in another country but doing business in the United States.






49. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






50. A provision in a contract stipulating that certain unforeseen events