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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 party who appoints a second party to serve as an agent.






2. 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






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






4. The repudiation of - or election to avoid - a voidable contract.






5. The individual who initiates a civil action.






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






7. Power to act for someone else.






8. A check for which the bank assures that the drawer has sufficient funds to make payment.






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






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






11. The contracting of services rather than goods.






12. The annulment or cancellation of an instrument - act or promise by one doing or making it.






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






14. Stock that entitles owner vote.






15. 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.






16. 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.






17. Anything that may be owned.






18. The principle that the decision of a court should serve as a guide or precedent and control the decision of a similar case in the future.






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






20. One in possession of commercial paper.






21. The party appointed by the principal to enter into a contract with a third party on behalf of the principal.






22. The party who hires employees to do certain work. '1 Endorsee — a person who becomes the holder of a negotiable instrument by endorsements which names him or her as the person to whom the instrument is negotiated.






23. Partner unknown to public with no part in management.






24. A check drawn on a bank's own funds and signed by a responsible bank official.

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25. Designation that applies when a corporation operates in any state other __ than where it is chartered.






26. A commercial paper payable to bearer; i.e. to the person having possession of such.






27. Person who writes his or her name on back of instrument.






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






29. An expression of willingness to enter a contractual agreement.






30. Courts that conduct the original trial and render their decision.






31. The goods specified by the buyer and seller.






32. The transfer of possession but not the title of personal property by one party to another - under agreement.






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






34. Operates in the state that granted the charter.






35. A written request initiating a civil suit.






36. Legislation intended to promote competition among businesses by prohibiting restraint of trade.






37. A creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.






38. A criminal offense that is punishable by confinement in prison or by death.






39. Stating an untrue fact.






40. The authority of an agent - stated in the document or agreement creating the agency.






41. Pretrial steps taken to learn the details of the case.






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






43. The party to whom any negotiable instrument is made payable.






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






45. 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).






46. The actual and definite statement of a seller - either verbally or in writing - guaranteeing a standard or level of performance.






47. The person who executes a promissory note.






48. 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.






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






50. A provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract.