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






2. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






3. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






4. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






5. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






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






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






8. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






9. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.






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






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






12. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






13. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






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






15. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






16. Goods that conform to contract specifications.






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






18. 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.






19. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






20. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






21. Property that is acquired by the debtor after the execution of a security agreement.






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






23. Joint ownership.






24. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.






25. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






26. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






27. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






28. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






29. The term used to designate a person who has an ownership interest in a limited liability company.






30. Reasonable grounds for believing that a person should be arrested or searched.






31. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






32. A set limit on the amount of goods that can be imported.






33. Ownership rights in property - including the right to possess and control the property.






34. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.






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






36. 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.






37. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con






38. An action to carry into effect the directions in a court decree or judgment.






39. 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.






40. 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.






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






42. 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.






43. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






44. 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.






45. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






46. The process of proving and validating a will and settling all matters pertaining to an estate.






47. One to whom an obligation is owed.






48. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






49. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






50. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.