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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. An implied promise by a landlord that rented residential premises are fit for human habitation






2. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






3. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.






4. One for whose benefit a promise is made in a contract but who is not a party to the contract.






5. The authority of a court to hear and decide a specific case.






6. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






7. 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.






8. Under the Uniform Commercial Code Section 2-403(2) - a rule stating that if goods are entrusted to a merchant who deals in goods of that kind - the merchant has the power to transfer those goods and all rights to them to a buyer in the ordinary cours






9. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






10. A company whose business activity is holding shares in another company.






11. Generally - the value given in return for a promise; involves two elements






12. Joint ownership.






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






14. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.






15. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






16. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






17. A person to whom an instrument is made payable.






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






19. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






20. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






21. A suit brought by a shareholder to enforce a corporate cause of action against a third person.


22. A contract between an employer and an employee in which the terms and conditions of employment are stated.






23. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






24. A prediction concerning potential loss based on known and unknown factors.






25. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






26. 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.






27. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






28. 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.






29. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






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






31. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






32. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






33. 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.






34. 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.






35. The idea that corporations can and should act ethically and be accountable to society for their actions.






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






37. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






38. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






39. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






40. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






41. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






42. 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.






43. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






44. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






45. A person on the board of directors who is also an officer of the corporation.






46. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






47. The basic document filed with a designated state official by which a limited partnership is formed.






48. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






49. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






50. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.