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Test your basic knowledge |
Business Law Vocab
Start Test
Study First
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.
Accord and Satisfaction
Real Property
Property
Principal
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
Negligence
Acceptance
Punitive Damages
Special Endorsement
3. Those goods which are - at the time of the contract - in existence and owned by the seller.
Usurious
Merchant
Restrictive Endorsement
Existing Goods
4. The repudiation of - or election to avoid - a voidable contract.
Foreign Corporation
Nominal Damages
Summons (Process)
Disaffirmance
5. The individual who initiates a civil action.
Bill of Lading
Plaintiff
Bearer Paper
Endorser
6. A commercial paper made payable 'to the order of' some named party; the word 'order' or its equivalent must be used.
Counteroffer
Independent Contractor
Order Paper
Partnership
7. Power to act for someone else.
Authority
General Partner
Revocation
Merchant
8. A check for which the bank assures that the drawer has sufficient funds to make payment.
Independent Contractor
Certified Check
Statute of Limitations
Misdemeanor
9. A means whereby one party conveys rights to another person who is not a party to the original contract.
Donee Beneficiary
Creditor Beneficiary
Assignment
Third Party Beneficiary
10. A private or civil wrong - either intentional or caused by negligence - for which there may be action for damages.
Tort
Nominal Partner
Holder
Agent
11. The contracting of services rather than goods.
Goods
Service Contracts
Formal Contract
Plaintiff
12. The annulment or cancellation of an instrument - act or promise by one doing or making it.
Negotiable Instrument (Commercial Paper)
Public Corporation
Revocation
Stockholders (Shareholders)
13. Termination of a contract by performance - agreement - impossibility - acceptance of breach - or operation of law.
Discharge
Commercial Paper (Negotiable Instrument)
Fiduciary
Accord and Satisfaction
14. Stock that entitles owner vote.
Duress
Common Stock
Executory Contracts
Answer
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.
Merchant
Certified Check
Order Paper
Express Authority
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.
Formal Contract
Check
Sole proprietorship
Order Paper
17. Anything that may be owned.
Summons (Process)
Ordinances
Property
Secret Partner
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.
Stare Decisis
Formal Contract
Plaintiff
Valid Contract
19. The signature or statement of purpose by the owner on the back of the instrument.
Unilateral Contract
Personal Property
Acceptance
Endorsement
20. One in possession of commercial paper.
Misrepresentation
Holder
Discovery
Felony
21. The party appointed by the principal to enter into a contract with a third party on behalf of the principal.
Malpractice
Statute of Limitations
Bailee
Agent
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.
Malpractice
Bearer
Employer
Usurious
23. Partner unknown to public with no part in management.
Dormant or sleeping partner
Crime
Consideration
Discovery
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.
Usurious
Foreign Corporation
Bearer
Identified Goods
26. A commercial paper payable to bearer; i.e. to the person having possession of such.
Maker
Bearer Paper
Silent Partner
Arraignment
27. Person who writes his or her name on back of instrument.
Endorser
Formal Contract
Draft
Domestic corporation
28. A corporation formed by individuals to form some non-governmental function.
Answer
Private Corporation
Accord and Satisfaction
Bailor
29. An expression of willingness to enter a contractual agreement.
Offeror
Creditor Beneficiary
Service Contracts
Offer
30. Courts that conduct the original trial and render their decision.
Discovery
Fiduciary
Trial Courts
Board of Directors
31. The goods specified by the buyer and seller.
Ratification
Voidable Contract
Assignment
Identified Goods
32. The transfer of possession but not the title of personal property by one party to another - under agreement.
Bailment
Identified Goods
Dormant or sleeping partner
Punitive Damages
33. An individual who takes no active part in the management of a business but has capital invested in the business.
Private Corporation
Sole proprietorship
Silent Partner
Offeror
34. Operates in the state that granted the charter.
Warranties
Dormant or sleeping partner
Domestic corporation
Arrest
35. A written request initiating a civil suit.
Statute of Limitations
Plaintiff
Goods
Petition (Complaint)
36. Legislation intended to promote competition among businesses by prohibiting restraint of trade.
Negotiable Instrument (Commercial Paper)
Sherman Antitrust Act
Donee Beneficiary
Contract
37. A creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.
Malpractice
Negligence
Subchapter S Corporation
Valid Contract
38. A criminal offense that is punishable by confinement in prison or by death.
Malpractice
Unenforceable Contract
Felony
Identified Goods
39. Stating an untrue fact.
Private Corporation
Misdemeanor
Promissory Estoppel
Misrepresentation
40. The authority of an agent - stated in the document or agreement creating the agency.
Property
Close (closed - closely held) corporation
Sole proprietorship
Express Authority
41. Pretrial steps taken to learn the details of the case.
Undue Influence
Discovery
Valid Contract
Maker
42. An endorsement which limits the liability of the endorser.
Criminal Law
Limited Partner
Bailor
Qualified Endorsement
43. The party to whom any negotiable instrument is made payable.
Payee
Bearer Paper
Defendant
Sherman Antitrust Act
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.
Arraignment
Punitive Damages
Commercial Paper (Negotiable Instrument)
Private Corporation
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).
Unilateral Contract
Simple Contract
Close (closed - closely held) corporation
Judgment
46. The actual and definite statement of a seller - either verbally or in writing - guaranteeing a standard or level of performance.
Express Warranty
Nominal Damages
Booking
Property
47. The person who executes a promissory note.
Statute of Limitations
Novation
Cashier's Check
Maker
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.
Drawer
Accord and Satisfaction
Creditor Beneficiary
Alien corporation
49. Stock giving special advantage as to payment of dividends - upon liquidation or both.
Preferred Stock
General Agent
Sale
Bill of Lading
50. A provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract.
Special Performance
Injunction
Judgment
Liquidated Damages