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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. 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.






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






3. 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






4. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






5. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






6. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.






7. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






8. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






9. 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.






10. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






11. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






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






13. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






14. 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.






15. 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.






16. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






17. 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.






18. Property with which the owner has voluntarily parted - with no intention of recovering it.






19. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






20. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






21. 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.






22. A check - other than a certified check - that is presented for payment more than six months after its date.






23. An employer's termination of an employee's employment in violation of the law.






24. A state statute under which certain types of contracts must be in writing to be enforceable.






25. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






26. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






27. 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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28. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






29. 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.






30. A public official authorized to attest to the authenticity of signatures.






31. 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.






32. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






33. All forms of personal property.






34. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






35. In the context of real property - an interest in land that does not include any right to possess the property.






36. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






37. The number of members of a decision-making body that must be present before business may be transacted.






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






39. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






40. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






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






42. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






43. Charging an illegal rate of interest.






44. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






45. A contract in which the terms of the agreement are stated in words - oral or written.






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






47. 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.






48. 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.






49. 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.






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