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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. 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






3. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






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






5. 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






6. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






7. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






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






9. A contract that is formed electronically.






10. A contract between an employer and an employee in which the terms and conditions of employment are stated.






11. An assertion that something either will or will not happen in the future.






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






13. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






14. One who owes an obligation to another.






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






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






17. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.






18. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






19. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






20. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






21. 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.






22. Land and everything attached to it - such as trees and buildings.






23. 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.






24. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






25. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






26. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






27. 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.






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






29. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






30. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






31. 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.






32. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






33. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






34. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






35. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






36. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






37. The relationship that exists between the promisor and the promisee of a contract.






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






39. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






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






41. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






42. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






43. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






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






45. 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.






46. Ownership rights in property - including the right to possess and control the property.






47. 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.






48. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






49. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






50. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).