Test your basic knowledge |

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 right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






2. A contract that by law requires a specific form - such as being executed under seal - for its validity.






3. A contract between the issuer of a bond and the bondholder.






4. The bank on which a check is drawn (the drawee bank).






5. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






6. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






7. An equity (ownership) interest in a corporation - measured in units of shares.






8. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






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






10. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.






11. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






12. 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.






13. The first bank to receive a check for payment.






14. All forms of personal property.






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






16. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






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






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






19. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






20. The act of stealing another's identifying information






21. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






22. A case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a case in which the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence to dispr






23. Property resulting from intellectual - creative processes.






24. 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.






25. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






26. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






27. Property with which the owner has involuntarily parted and then cannot find or recover.






28. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






29. The goods and services that domestic firms sell to buyers located in other countries.






30. Charging an illegal rate of interest.






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






32. 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.






33. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






34. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






35. 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






36. An assertion that something either will or will not happen in the future.






37. One who entrusts goods to a bailee.






38. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






39. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






40. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






41. 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






42. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






43. 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.






44. Procedurally - a plaintiff's response to a defendant's answer.






45. 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.






46. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






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






48. Any interest in personal property or fixtures that secures payment or performance of an obligation.






49. Information or processes that give a business an advantage over competitors that do not know the information or processes.






50. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.