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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 negotiable instrument containing a promise to pay.






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






3. A business owned by one person.






4. A written request initiating a civil suit.






5. The transfer of title to goods from the seller to the buyer for a consideration called the price.






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






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






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






9. A token award to symbolize vindication of the wrong done to the plaintiff; generally - the award is $1.00.






10. A one-sided contract/agreement formed when an act is done in consideration for a promise. 01






11. An agreement which is not in the form required by law.






12. An individual actively and openly engaged in the business and held out to everyone as a partner.






13. A decision of a court.






14. Declared value of outstanding stock.






15. An offense which is injurious to society as a whole.






16. The person who executes a promissory note.






17. To take into police custody.






18. An award paid to the plaintiff in order to punish the defendant - not to compensate the plaintiff.






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






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






21. The party who initiates - or makes - an offer.






22. Person not party to a contract - but whom parties intended to benefit.






23. Partner active in a business unknown to the public.






24. Stock reacquired by a corporation.






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

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






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






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






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






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






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






32. An agreement of no legal effect.






33. Laws which seek to promote competition among businesses.






34. Any contract other than a formal contract - whether written - oral or implied.






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






36. The person to whom an offer is made.






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






38. A situation in which one of the parties to a contract fails or otherwise refuses to perform the obligation established in that contract.






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






40. A warranty imposed by law - arising automatically because the sale has been made.






41. 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.






42. A judicial order or decree forbidding the performance of a certain act.






43. A corporation formed to carry out government functions.






44. The contract existing between the consignor (shipper) and the carrier.






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






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






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






48. 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).






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






50. One who is authorized to execute the principal's business of a particular kind - or all the principal's business at a particular place - if not all of one kind.