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Business Law Vocab

Subjects : law, business-law
  • Answer 50 questions in 15 minutes.
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  • 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 person - company - or financial institution ordered to pay a draft.

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

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

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

5. A contract that would be an enforceable agreement - but due to circumstances - may be set aside by one of the parties.

6. A person in possession of an instrument.

7. Those rules of civil conduct commanding what is right and prohibiting what is wrong.

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

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

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

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

12. Administrative step taken after an arrested person is brought to a police station - which involves entry of the person's name - the crime for which the arrest was made - and other relevant facts on the police 'blotter -' and which may also include ph

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

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

15. One in possession of commercial paper.

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

17. A negotiable instrument containing a promise to pay.

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

19. 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

20. An equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment.

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

22. One to whom goods are shipped by common carrier.

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

24. Official document detailing a defendant's defense.

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

26. Guarantees made by a seller that an article - good or service will conform to certain standard or will operate in a certain manner.

27. Canceling - annulling - avoiding.

28. 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.

29. The party who gives up possession - but not title - of property in a bailment.

30. A written order signed by one person requiring the person to whom it is addressed to pay a particular sum of money to the bearer - either on demand or at a certain time.

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

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

33. A person under full legal age; in most states (but not all) - the standard is under the age of eighteen.

34. The individual who initiates a civil action.

35. A means of removing one's free will; obtaining consent by means of threat to do harm ii. - to the person - his family - or his property.

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

37. One who takes initial steps to form corporation.

38. Those contracts in which the parties have fulfilled the terms. Execution the carrying out or completion of some task.

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

40. 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).

41. That consideration stipulated by contract - generally expressed in money or money's worth.

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

43. Those rules of conduct prescribed by a government and its agencies - regulating business transactions.

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

45. Stock with an assigned face vale.

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

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

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

49. Stock that entitles owner vote.

50. Partner whose liability for the firm's debts is limited to the amount of his/her investment.