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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. An order by a bank customer to his or her bank not to pay or certify a certain check.






2. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






3. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






4. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






5. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






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






7. 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.






8. A contract having no legal force or binding effect.






9. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






10. The creation of an absolute or unconditional right or power.






11. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






12. State laws that regulate the offering and sale of securities.






13. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






14. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






15. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






16. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






17. 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.






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






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






20. 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.






21. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






22. 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.






23. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






24. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






25. 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.






26. A writ from a higher court asking the lower court for the record of a case.






27. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






28. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






29. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






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






31. One designated in a will to receive a gift of personal property.






32. 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.






33. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






34. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






35. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






36. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






37. 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






38. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






39. 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.






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






41. 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






42. In a given state - a corporation that does business in - and is organized under the law of - that state.






43. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






44. The relationship that exists between the promisor and the promisee of a contract.






45. 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.






46. Property with which the owner has voluntarily parted and then cannot find or recover.






47. The passing of title to property from the seller to the buyer for a price.






48. 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.






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






50. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f