Test your basic knowledge |

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. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






2. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






3. 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






4. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






5. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






6. An assertion that something either will or will not happen in the future.






7. 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.






8. A gift of personal property by will (from the verb to bequeath).






9. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






10. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






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






12. 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.






13. A worldwide system in which foreign currencies are bought and sold.






14. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






15. 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.






16. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.






17. 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.






18. One for whose benefit a promise is made in a contract but who is not a party to the contract.






19. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






20. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






21. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






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






23. Law that pertains to a particular nation (as opposed to international law).






24. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






25. A contract that has been completely performed by both parties.






26. 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.






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






28. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






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






30. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






31. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






32. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






33. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






34. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






35. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






36. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






37. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






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






39. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






40. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






41. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






42. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.






43. 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.






44. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.






45. One who makes and executes a will.






46. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






47. A set of governing rules adopted by a corporation or other association.






48. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






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






50. 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.