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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. Property with which the owner has involuntarily parted and then cannot find or recover.
floating lien
lost property
force majeure clause
export
2. 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.
void contract
condemnation
unenforceable contract
mediation
3. 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.
insurance
confusion
codicil
preferred stock
4. 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
output contract
writ of attachment
implied warranty of merchantability
resulting trust
5. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.
deficiency judgment
covenant not to compete
preemptive rights
small claims court
6. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.
motion for a new trial
electronic fund transfer (EFT)
alien corporation
specific performance
7. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.
closed shop
bailment
respondeat superior
summons
8. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.
reaffirmation agreement
execution
motion for judgment n.o.v.
installment contract
9. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a
commingle
formal contract
security
implied-in-fact contract
10. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.
unreasonably dangerous product
acceptance
treaty
acceleration clause
11. 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.
testamentary trust
liquidated debt
ethical reasoning
preferred creditor
12. One to whom goods are entrusted by a bailor.
default
replevin
mens rea
bailee
13. 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
bailee
operating agreement
output contract
order instrument
14. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.
justiciable controversy
actus reus
drawee
pledge
15. 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.
foreign exchange market
necessaries
concurrent conditions
gift
16. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.
underwriter
corporation
self-incrimination
tariff
17. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.
stock certificate
apparent authority
consignment
franchise
18. An estate in realty held by a tenant under a lease. In every leasehold estate - the tenant has a qualified right to possess and/or use the land.
incidental damages
prenuptial agreement
leasehold estate
corporate social responsibility
19. 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.
tippee
Federal Reserve System
union shop
blue sky laws
20. A contract that has not as yet been fully performed.
profit
incidental damages
intellectual property
executory contract
21. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.
franchisor
collective mark
debtor in possession (DIP)
will
22. 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.
suretyship
stock
promissory note
cure
23. Having left a will at death.
testate
shareholder's derivative suit
tombstone ad
negotiation
24. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody
categorical imperative
risk
bailee
resulting trust
25. One who makes and executes a will.
formal contract
testator
offeror
independent contractor
26. A contract that does not require a specified form or formality to be valid.
closed shop
concurrent conditions
administrator
informal contract
27. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.
unenforceable contract
target corporation
condition subsequent
surety
28. The goods and services that domestic firms sell to buyers located in other countries.
export
question of law
motion for judgment n.o.v.
mechanic's lien
29. 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.
acceptance
right of reimbursement
fixture
obligor
30. A trust that is created by will and therefore does not take effect until the death of the testator.
employment contract
collateral
domain name
testamentary trust
31. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio
wrongful discharge
implied warranty of fitness for a particular purpose
exclusive distributorship
parent-subsidiary merger
32. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.
mediation
sales contract
limited liability partnership (LLP)
limited liability company (LLC)
33. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.
watered stock
risk
identification
constructive discharge
34. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
motion for summary judgment
contractual capacity
privity of contract
outside director
35. A person who receives inside information.
alternative dispute resolution (ADR)
promissory estoppel
articles of incorporation
tippee
36. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the
quasi contract
quorum
spendthrift trust
trademark
37. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.
ultra vires
contractual capacity
acceleration clause
piercing the corporate veil
38. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).
assignee
purchase-money security interest (PMSI)
power of attorney
insolvent
39. A writ from a higher court asking the lower court for the record of a case.
writ of certiorari
certified check
unilateral mistake
franchisee
40. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
life estate
nonpossessory interest
fictitious payee
private equity capital
41. Drawee that is legally obligated to pay an instrument when it is presented later for payment.
surety
acceptor
reformation
revocation
42. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would
cyber mark
writ of certiorari
per stirpes
estate in property
43. 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
discharge
self-incrimination
discharge
robbery
44. A person to whom an instrument is made payable.
arson
stop-payment order
right of reimbursement
payee
45. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
inside director
duress
lease
indorsement
46. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.
homestead exemption
sexual harassment
imposter
implied warranty of fitness for a particular purpose
47. 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
floating lien
robbery
limited liability partnership (LLP)
motion for judgment n.o.v.
48. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.
quasi contract
motion for judgment on the pleadings
informal contract
tenancy at sufferance
49. 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.
forum-selection clause
cram-down provision
check
implied-in-fact contract
50. 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
intermediary bank
limited liability partnership (LLP)
Totten trust
consolidation