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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. 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.
bailee
ultra vires
fictitious payee
entrapment
2. 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.
draft
scienter
security interest
certification mark
3. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.
trust
intangible property
bequest
franchise
4. A designation in the United States for a corporation formed in another country but doing business in the United States.
underwriter
accredited investors
alien corporation
prospectus
5. 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.
rule of four
question of law
depositary bank
incidental damages
6. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.
intellectual property
cybersquatting
private equity capital
smart card
7. A document by which title to property (usually real property) is passed.
e-money
forum-selection clause
deed
informal contract
8. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'
motion for a new trial
acceptor
integrated contract
order instrument
9. Jurisdiction that exists when a case can be heard only in a particular court or type of court.
cram-down provision
discharge
contractual capacity
exclusive jurisdiction
10. A gift of personal property under a will.
default
unconscionable contract or clause
legacy
piercing the corporate veil
11. A contract that has not as yet been fully performed.
surety
mailbox rule
executory contract
lease agreement
12. 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.
mediation
past consideration
consolidation
liquidated damages
13. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.
piercing the corporate veil
docket
preference
articles of incorporation
14. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.
confusion
alternative dispute resolution (ADR)
constructive delivery
junior lienholder
15. A revocable right or privilege of a person to come onto another person's land.
cure
course of performance
assignment
license
16. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio
implied warranty
due diligence
mortgage
floating lien
17. 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.
generally accepted accounting principles (GAAP)
venue
Federal Reserve System
agency
18. The failure - without legal excuse - of a promisor to perform the obligations of a contract.
breach of contract
insurable interest
counterclaim
implied warranty
19. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo
beyond a reasonable doubt
rescission
tangible employment action
answer
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
incidental damages
insolvent
joint and several liability
cover
21. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.
promissory note
market-share liability
preference
fee simple absolute
22. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.
generally accepted accounting principles (GAAP)
undisclosed principal
U.S. trustee
petition in bankruptcy
23. 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.
concurrent ownership
mislaid property
smart card
U.S. trustee
24. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.
electronic fund transfer (EFT)
choice-of-language clause
bona fide occupational qualification (BFOQ)
articles of partnership
25. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.
charitable trust
domain name
winding up
tangible property
26. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.
counterclaim
sovereign immunity
cease-and-desist order
hot-cargo agreement
27. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
free-writing prospectus
contractual capacity
executory contract
privity of contract
28. 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.
negotiable instrument
choice-of-law clause
acceptance
forgery
29. 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.
peer-to-peer (P2P) networking
spendthrift trust
winding up
taking
30. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.
fiduciary
inter vivos trust
seniority system
clearinghouse
31. One who owes an obligation to another.
condition
hot-cargo agreement
obligor
penalty
32. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.
generally accepted accounting principles (GAAP)
disaffirmance
express contract
contract
33. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.
partnering agreement
partially disclosed principal
trade name
liquidated damages
34. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.
expropriation
scienter
acceleration clause
consequential damages
35. Joint ownership.
concurrent ownership
member
check
conforming goods
36. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.
Federal Reserve System
condition precedent
wrongful discharge
sublease
37. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.
recording statutes
security
ethical reasoning
constructive trust
38. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
copyright
right of subrogation
inter vivos trust
business judgment rule
39. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.
judicial review
constructive eviction
policy
click-on agreement
40. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.
fixed-term tenancy
motion for judgment n.o.v.
SEC Rule 10b-5
insurance
41. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.
international organization
drawee
outside director
seasonably
42. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'
arbitration
bearer instrument
shareholder's derivative suit
objective theory of contracts
43. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.
assignment
stale check
tender of delivery
concurrent conditions
44. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.
limited liability partnership (LLP)
mutual fund
intended beneficiary
concurrent ownership
45. 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.
writ of attachment
deficiency judgment
insider trading
felony
46. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.
prenuptial agreement
usage of trade
backdating
dishonor
47. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t
browse-wrap terms
preferred creditor
consequential damages
incidental damages
48. 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
e-money
dissociation
negotiation
mens rea
49. The idea that corporations can and should act ethically and be accountable to society for their actions.
dissolution
restitution
corporate social responsibility
peer-to-peer (P2P) networking
50. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th
short-form merger
penalty
civil law system
motion for a new trial