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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 security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






2. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






3. A person to whom a promise is made.






4. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






5. 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.






6. A party to whom the rights under a contract are transferred - or assigned.






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






8. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






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






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. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






12. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






13. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






14. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






15. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






16. 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).






17. The act of accepting and giving legal force to an obligation that previously was not enforceable.






18. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.






19. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






20. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






21. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






22. 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.






23. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'






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






25. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






26. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






27. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






28. The power of a government to take land from private citizens for public use on the payment of just compensation.






29. A designation in the United States for a corporation formed in another country but doing business in the United States.






30. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






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






32. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






33. 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.






34. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






35. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






36. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






37. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






38. A contract that by law requires a specific form - such as being executed under seal - for its validity.






39. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






40. 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.






41. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






42. 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.






43. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






44. A promise or commitment to perform or refrain from performing some specified act in the future.






45. 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






46. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






47. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






48. Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender - national origin - and religion - but not race.






49. 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.






50. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.