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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. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.
fee simple absolute
cyberterrorist
check
collecting bank
2. 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.
consolidation
insurance
foreign exchange market
certification mark
3. A provision in a contract stipulating that certain unforeseen events
maker
risk management
force majeure clause
ratification
4. 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
hot-cargo agreement
revocation
smart card
preference
5. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.
traveler's check
tenancy in common
tangible employment action
drawee
6. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.
parent-subsidiary merger
retained earnings
service mark
articles of incorporation
7. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.
corporation
motion for summary judgment
shrink-wrap agreement
draft
8. 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.
check
past consideration
offer
prospectus
9. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.
output contract
mechanic's lien
mutual fund
liquidated damages
10. A state statute under which certain types of contracts must be in writing to be enforceable.
certified check
gift inter vivos
Statute of Frauds
exculpatory clause
11. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.
conforming goods
right of subrogation
forgery
backdating
12. 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.
formal contract
rescission
working papers
appraisal right
13. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.
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14. Property with which the owner has voluntarily parted and then cannot find or recover.
liquidation
mislaid property
ratification
consignment
15. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.
disparate-impact discrimination
bounty payment
proxy
intermediary bank
16. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.
articles of incorporation
stock certificate
discharge
bankruptcy court
17. A type of contract that arises when a promise is given in exchange for a return promise.
target corporation
testate
obligor
bilateral contract
18. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only
administrator
petition in bankruptcy
disaffirmance
tenancy at sufferance
19. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.
mitigation of damages
right of subrogation
fiduciary
levy
20. 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.
shareholder's derivative suit
dissociation
distributed network
consignment
21. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.
shrink-wrap agreement
attachment
principle of rights
interrogatories
22. One to whom goods are entrusted by a bailor.
bearer
attachment
bailee
independent contractor
23. The first bank to receive a check for payment.
depositary bank
apparent authority
indorsement
intermediary bank
24. A crime committed on the Internet.
larceny
dishonor
offer
cyber crime
25. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.
counterclaim
presentment
summons
trust
26. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued
draft
per capita
choice-of-language clause
continuation statement
27. 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.
parol evidence rule
unenforceable contract
overdraft
testator
28. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.
adverse possession
emancipation
self-incrimination
deficiency judgment
29. A network that can be used by persons located (distributed) around the country or the globe to share computer files.
foreign exchange market
distributed network
complaint
mens rea
30. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.
employment discrimination
certified check
traveler's check
voir dire
31. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.
dishonor
arbitration
hot-cargo agreement
investment contract
32. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.
delegation of duties
usage of trade
will
business judgment rule
33. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil
due diligence
implied warranty of fitness for a particular purpose
presentment
motion to dismiss
34. 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
purchase-money security interest (PMSI)
gift inter vivos
draft
commingle
35. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].
cure
certificate of deposit (CD)
profit
malpractice
36. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'
collateral
motion for summary judgment
performance
hacker
37. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.
business necessity
holding company
unilateral contract
international organization
38. 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
drawer
articles of partnership
prospectus
guarantor
39. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
civil law system
preference
entrapment
bankruptcy court
40. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.
counterclaim
corporate social responsibility
exclusive distributorship
certificate of limited partnership
41. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
disclosed principal
cover
condition precedent
apparent authority
42. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.
identification
cybernotary
inside director
workout
43. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.
cyberterrorist
ultra vires
working papers
e-agent
44. 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.
quota
purchase-money security interest (PMSI)
partially disclosed principal
money laundering
45. 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.
covenant not to compete
franchisee
tangible property
peer-to-peer (P2P) networking
46. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.
limited partner
certified check
exclusive jurisdiction
assignment
47. A person to whom an offer is made.
ethics
mutual fund
indorsement
offeree
48. 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
alien corporation
alternative dispute resolution (ADR)
common stock
output contract
49. 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
gift
depositary bank
discharge
judicial review
50. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).
employment at will
implied warranty of merchantability
frustration of purpose
robbery