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






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






3. 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.






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






5. 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.






6. The person - company - or financial institution ordered to pay a draft.






7. One who takes initial steps to form corporation.






8. A body of persons elected by the stockholders to define and establish corporate policy.






9. 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






10. Stating an untrue fact.






11. 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).






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






13. A decision of a court.






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






15. Improper influence that is asserted by one dominant person over another - without the threat or harm.






16. One that is incorporated in a foreign country.






17. One who ships goods by common carrier.






18. A negotiable instrument containing a promise to pay.






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






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






21. The goods specified by the buyer and seller.






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






23. 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.






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

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






26. The person who executes a promissory note.






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






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






29. A written request initiating a civil suit.






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






31. 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.






32. 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






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






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






35. A notice of complaint given to a defendant - defining the complaint and a time frame in which a response - or answer - must be filed - and which serves the purpose of conferring personal jurisdiction over the defendant.






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






37. An award paid to the injured party to cover the exact amount of their loss - but no more.






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






39. One in which terms of the contract are implied by acts or conduct of the '_ parties.






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






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






42. Those goods which are not in existence at the time a contract is agreed to.






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






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






45. One in possession of commercial paper.






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






47. All property which is not real property.






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






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






50. Those having title to one or more shares of stock in a corporation; combined - they represent ownership of the corporation.