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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. 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.






2. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.






3. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






4. 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.






5. 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.'






6. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






7. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






8. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






9. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be






10. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






11. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






12. 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.






13. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






14. A provision in a contract stipulating that certain unforeseen events






15. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






16. A party to whom the rights under a contract are transferred - or assigned.






17. Property with which the owner has voluntarily parted and then cannot find or recover.






18. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






19. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






20. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






21. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.






22. A tax on imported goods.






23. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.






24. Property that is acquired by the debtor after the execution of a security agreement.






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






26. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






27. The passing of title to property from the seller to the buyer for a price.






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. 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. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).






31. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






32. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






33. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






34. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






35. A type of contract that arises when a promise is given in exchange for a return promise.






36. 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






37. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






38. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






39. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






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






41. A contract that does not require a specified form or formality to be valid.






42. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






43. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






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






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






46. A contract that has been completely performed by both parties.






47. The term used to designate a person who has an ownership interest in a limited liability company.






48. One who makes and executes a will.






49. A public official authorized to attest to the authenticity of signatures.






50. Law that pertains to a particular nation (as opposed to international law).