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. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






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






3. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






4. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued






5. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






6. In a sale of goods - the express designation of the goods provided for in the contract.






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






8. 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.






9. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






10. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






11. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






12. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






13. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






14. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






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






16. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






17. A revocable right or privilege of a person to come onto another person's land.






18. 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.






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






20. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






21. A party that holds a lien that is subordinate to one or more other liens on the same property.






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






23. 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






24. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






25. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






26. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






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






28. 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.






29. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.






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






31. 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.






32. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






33. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






34. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






35. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






36. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






37. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






38. A check drawn by a bank on itself.


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






40. A contract having no legal force or binding effect.






41. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






42. In a given state - a corporation that does business in - and is organized under the law of - that state.






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






44. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






45. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






46. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






47. 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.






48. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.






49. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






50. 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