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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.
counterclaim
right of reimbursement
cost-benefit analysis
warranty deed
2. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.
liquidation
consolidation
trust
probate
3. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.
garnishment
watered stock
risk management
creditors' composition agreement
4. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.
motion for judgment n.o.v.
motion for judgment on the pleadings
risk
award
5. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody
confiscation
consideration
probate court
categorical imperative
6. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
bankruptcy court
informal contract
robbery
delegation of duties
7. 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.
incidental damages
choice-of-language clause
Statute of Frauds
bond
8. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].
mortgage
intangible property
rule of four
cure
9. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.
due diligence
mailbox rule
recording statutes
writ of certiorari
10. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic
mutual fund
click-on agreement
confiscation
generally accepted accounting principles (GAAP)
11. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
discharge
stop-payment order
exclusive jurisdiction
acceleration clause
12. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.
tippee
security agreement
affirmative action
tenancy in common
13. A set limit on the amount of goods that can be imported.
negotiation
quota
voidable contract
grand jury
14. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.
tombstone ad
attachment
docket
respondeat superior
15. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.
release
bailee
eviction
online dispute resolution (ODR)
16. A designation in the United States for a corporation formed in another country but doing business in the United States.
identity theft
estate in property
eminent domain
alien corporation
17. 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.
presentment
forum-selection clause
securities
e-contract
18. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.
notary public
fixed-term tenancy
delegatee
conveyance
19. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).
check
e-money
universal defenses
co-surety
20. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201
writ of execution
cover
security interest
insolvent
21. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.
imposter
default
motion for a directed verdict
Statute of Frauds
22. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'
drawer
intangible property
expropriation
signature
23. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.
fictitious payee
answer
preference
drawee
24. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.
sexual harassment
pledge
tenancy at will
writ of attachment
25. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.
delegatee
stored-value card
foreign exchange market
moral minimum
26. 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
e-contract
apparent authority
life estate
dumping
27. 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.
member
arbitration clause
community property
proceeds
28. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.
policy
forum-selection clause
holder in due course (HDC)
white-collar crime
29. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.
workout
correspondent bank
valid contract
installment contract
30. 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.
bequest
limited liability partnership (LLP)
stored-value card
voir dire
31. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.
course of dealing
Federal Reserve System
attachment
secondary boycott
32. A set of governing rules adopted by a corporation or other association.
right-to-work law
fictitious payee
arbitration
bylaws
33. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.
co-surety
indictment
computer crime
bequest
34. The geographic district in which a legal action is tried and from which the jury is selected.
moral minimum
search warrant
anticipatory repudiation
venue
35. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.
accredited investors
concurrent conditions
nominal damages
distribution agreement
36. 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.
appraisal right
blue laws
accession
constructive eviction
37. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.
S corporation
mortgagee
apparent authority
lease agreement
38. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.
smart card
assignment
shareholder's derivative suit
implied warranty
39. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.
writ of execution
expropriation
search warrant
order for relief
40. Information or processes that give a business an advantage over competitors that do not know the information or processes.
force majeure clause
I-9 verification
maker
trade secret
41. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).
deposition
forum-selection clause
consumer-debtor
condemnation
42. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.
sale on approval
mitigation of damages
payee
promisee
43. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or
unconscionable contract or clause
course of performance
constructive eviction
distributed network
44. 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.
per capita
debtor in possession (DIP)
motion for judgment on the pleadings
void contract
45. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.
community property
target corporation
dissociation
private equity capital
46. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.
record
cross-collateralization
counterclaim
securities
47. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.
identification
revocation
normal trade relations (NTR) status
venture capital
48. The creation of an absolute or unconditional right or power.
bylaws
lessor
check
vesting
49. A contract that results when an offer can be accepted only by the offeree's performance.
workout
delegatee
unilateral mistake
unilateral contract
50. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.
dishonor
counterclaim
joint tenancy
motion for judgment on the pleadings