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






2. 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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3. 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.






4. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






5. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






6. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






7. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






8. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






9. 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.






10. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






11. A set of governing rules adopted by a corporation or other association.






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






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






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






15. 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.






16. 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






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






18. A legally recognized authority that can certify the validity of digital signatures.






19. 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






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






21. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






22. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






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






24. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'






25. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






26. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






27. Any voluntary transfer of property made without consideration - past or present.






28. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






29. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






30. 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.






31. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.






32. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






33. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






34. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






35. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






36. 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






37. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






38. 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






39. One who makes and executes a will.






40. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.






41. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






42. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






43. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






44. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






45. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






46. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






47. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






48. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






49. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






50. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.