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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. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






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






3. 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






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






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






6. 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.






7. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.






8. The act of transferring to another all or part of one's rights arising under a contract.






9. 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






10. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






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






12. 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.






13. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






14. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.






15. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.






16. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






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






18. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






19. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






20. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.






21. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






22. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






23. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






24. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






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

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26. 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.






27. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.






28. 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






29. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






30. A worldwide system in which foreign currencies are bought and sold.






31. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






32. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






33. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






34. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.






35. Any bank handling an item for collection - except the payor bank.






36. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






37. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






38. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






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






40. A charge by a grand jury that a named person has committed a crime.






41. 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.






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






43. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






44. A tax on imported goods.






45. A party to whom the rights under a contract are transferred - or assigned.






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






47. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






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






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






50. 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.