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






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






3. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






4. 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).






5. A person to whom an instrument is made payable.






6. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






7. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






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






9. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






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






11. A provision in a contract stipulating that certain unforeseen events






12. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






13. One who makes and executes a will.






14. In the context of real property - an interest in land that does not include any right to possess the property.






15. 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.






16. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






17. 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






18. A trademark in cyberspace.






19. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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20. 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).






21. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






22. 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






23. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






24. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






25. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






26. A tax on imported goods.






27. 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






28. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






29. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






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






31. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






32. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






33. 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.






34. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






35. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






36. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).






37. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






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






39. Generally - the value given in return for a promise; involves two elements






40. 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.






41. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






42. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






43. The term used to designate a person who has an ownership interest in a limited liability company.






44. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






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






46. 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.






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






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






49. A contract in which one party forfeits the right to pursue a legal claim against the other party.






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