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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 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.






2. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






3. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.






4. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






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






6. Procedurally - a defendant's response to the plaintiff's complaint.






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






8. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






9. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






10. 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.






11. 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






12. The authority of a court to hear and decide a specific case.






13. 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.






14. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






15. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






16. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






17. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






18. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






19. 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.






20. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






21. The document filed with a designated state official by which a limited liability company is formed.






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






23. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






24. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






25. One to whom an obligation is owed.






26. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






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






28. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.






29. A contract that has not as yet been fully performed.






30. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






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






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






33. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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34. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






35. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.






36. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






37. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






38. 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






39. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






40. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






41. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






42. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






43. 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.






44. 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).






45. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.






46. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






47. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






48. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






49. 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.






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