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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 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.






2. 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






3. The act of transferring to another all or part of one's duties arising under a contract.






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






5. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






6. 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.






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






8. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






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






10. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






11. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






12. A person who receives inside information.






13. One who entrusts goods to a bailee.






14. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






15. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






16. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.






17. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






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






19. 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






20. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






21. 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.






22. An agreement that creates or provides for a security interest between the debtor and a secured party.






23. 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.






24. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






25. 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.






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






27. 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






28. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






29. A contract that is formed electronically.






30. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






31. Goods that conform to contract specifications.






32. A tax on imported goods.






33. 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






34. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






35. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






36. 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






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






38. 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.






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






40. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






41. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






42. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






43. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






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






45. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






46. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






47. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






48. 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






49. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






50. The purchase or sale of securities on the basis of information that has not been made available to the public.