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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.
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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 party to whom any negotiable instrument is made payable.

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

3. An artificial being - invisible - intangible and existing only in contemplation of law; an entity that has a distinct existence separate and apart from the existence of its individual members.

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

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

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

7. 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.

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

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

10. Court hearing cases appealed from lower courts.

11. One who contracts to perform certain tasks for a set fee - but who is contracting party as a means by which the contract is executed - except for specifications established in the contract.independent of the control of the

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

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

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

15. Recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will.

16. 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).

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

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

19. Recognized as the most important statute in business law; includes provisions which regulate certain sales of goods.

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

21. The person who executes any draft.

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

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

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

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

26. Declared value of outstanding stock.

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

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

29. A corporation formed to carry out government functions.

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

31. A person in possession of an instrument.

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

33. 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.

34. A written request initiating a civil suit.

35. The necessity that the parties desiring to enter into contracts meet all requirements.

36. An agreement of no legal effect.

37. To take into police custody.

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

39. 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.

40. A contract which will be enforced by the court.

41. Canceling - annulling - avoiding.

42. Having no words other than the signature of the endorser.

43. A statute originally enacted by the English Parliament and now enacted in some form in all states - listing certain types of contracts which could be enforced only if in written form.

44. 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.

45. 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.

46. The individual who initiates a civil action.

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

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

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

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