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






2. All forms of personal property.






3. 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






4. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






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






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






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






8. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






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






10. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






11. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






12. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






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






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






15. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






16. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






17. 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






18. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






19. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






20. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






21. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






22. The number of members of a decision-making body that must be present before business may be transacted.






23. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






24. Property with which the owner has involuntarily parted and then cannot find or recover.






25. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






26. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






27. A gift of personal property under a will.






28. 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






29. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






30. 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.






31. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






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






33. A promise or commitment to perform or refrain from performing some specified act in the future.






34. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






35. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






36. Property with which the owner has voluntarily parted and then cannot find or recover.






37. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






38. 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






39. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






40. A party to whom contractual obligations are transferred - or delegated.






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






42. 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.






43. 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.






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






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






46. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






47. 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.






48. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






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






50. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.







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