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






2. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






3. A trust that is created by will and therefore does not take effect until the death of the testator.






4. Any bank handling an item for collection - except the payor bank.






5. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.






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






7. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






8. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






9. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






10. 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






11. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






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






13. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






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






15. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






16. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






17. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






18. A legally recognized authority that can certify the validity of digital signatures.






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






20. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






21. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






22. Standards concerning an auditor's professional qualities and the judgment exercised by him or her in the performance of an audit and report. The source of the standards is the American Institute of Certified Public Accountants.






23. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






24. A person on the board of directors who is also an officer of the corporation.






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






26. 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.






27. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






28. A contract in which one party forfeits the right to pursue a legal claim against the other party.






29. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






30. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






31. 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






32. The image and overall appearance of a product






33. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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






35. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






36. 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.






37. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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38. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.






39. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






40. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






41. 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.






42. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






43. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






44. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.






45. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






46. 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.






47. 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






48. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.






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






50. 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.