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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 common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






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






3. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.






4. 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.






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






6. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






7. Property that is movable; any property that is not real property.






8. 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.






9. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






10. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






11. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






12. The basic document filed with a designated state official by which a limited partnership is formed.






13. 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.






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






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






16. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






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






18. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






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






20. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






21. 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.






22. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






23. 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






24. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






25. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






26. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






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






28. A contract that results when an offer can be accepted only by the offeree's performance.






29. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






30. A person appointed by a testator in a will to see that her or his will is administered appropriately.






31. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






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






33. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






34. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.






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






36. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






37. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






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






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






40. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






41. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






42. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.






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






44. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






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






46. Within a specified time period or - if no period is specified - within a reasonable time.






47. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






48. 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.






49. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






50. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.







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