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Business Law Vocab

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. A commercial paper made payable 'to the order of' some named party; the word 'order' or its equivalent must be used.






2. The contracting of services rather than goods.






3. Recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will.






4. A relationship of trust and confidence - such as that which exists between partners in a partnership.






5. Movable tangible personal property.






6. A designation which applies to a corporation in which outstanding shares of stock and managerial control are held by a limited number of people (often members of the same family).






7. Land and those objects permanently attached to land. Rejection refusal to accept.






8. A criminal offense which is neither treason nor a felony.






9. An endorsement which designates the particular person to whom payment is to be made.






10. Laws enacted by local municipalities.






11. A writing drawn in a special form which can be transferred from person to substitute for money or as an instrument of credit.






12. An order by a depositor on the bank to pay a sum of money to a payee. Civil Law — legal proceedings concerned with the rights of public citizens.






13. The signature or statement of purpose by the owner on the back of the instrument.






14. Evidences of ownership of personal property such as stock of corporations - checks and copyrights.






15. An individual who takes no active part in the management of a business but has capital invested in the business.






16. A law that restricts the period of time within which an action may be brought to court.






17. The party who acquires possession but not the title of personal property in a bailment.






18. Exceeding the maximum rate of interest which may be charged on loans.






19. Declared value of outstanding stock.






20. Stock giving special advantage as to payment of dividends - upon liquidation or both.






21. Newest form of business ownership recognized in the U.S.; combines features of both the corporation and partnership.






22. The person to whom the promise of a contract owes an obligation or duty which will be discharged to the extent that the promisor performs the promise.






23. Those contracts that must be in special form or produced in a certain way - such as under seal.






24. A third party beneficiary to whom no legal duty is owed and for whom performance is a gift.






25. Confirming an act that was executed without authority or an act which was voidable.






26. The change of one of the parties to a contract at the mutual agreement of the original parties.






27. That which the promisor demands and receives as the price for a promise.






28. A means whereby one party conveys rights to another person who is not a party to the original contract.






29. An endorsement which prevents the use of the instrument for anything except the stated use.






30. Failure to exercise ordinary care; omission to do something which a reasonable - prudent person would do under ordinary circumstances or the doing of something which a reasonable and prudent person would not do; the lack of due care (exercised by a w






31. Customs that have become recognized by the courts as binding on the community.






32. Person who pretends to be a partner or permits others to represent him or her as a partner.






33. A person who deals in goods of the kind - or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction.






34. The person against whom legal action is brought. 1






35. Stating an untrue fact.






36. The person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done.






37. A corporation formed by individuals to form some non-governmental function.






38. A negotiable instrument containing a promise to pay.






39. Laws which seek to promote competition among businesses.






40. Termination of a contract by performance - agreement - impossibility - acceptance of breach - or operation of law.






41. An agent's authority to do things not specifically authorized in order to carry out express authority.






42. An agreement between two or more competent persons which is enforceable by law.






43. The intentional or reckless false statement of a material fact upon which the injured party relied which induced the injured party to enter into a contract to his or her detriment.






44. Those contracts in which the terms have not been completely executed or fulfilled.






45. Power to act for someone else.






46. An endorsement which limits the liability of the endorser.






47. An agreement to an offer resulting in a contract.






48. A private or civil wrong - either intentional or caused by negligence - for which there may be action for damages.






49. The individual who initiates a civil action.






50. Those goods which are - at the time of the contract - in existence and owned by the seller.