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Business Law Fundamentals

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. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






2. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






3. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






4. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






5. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be






6. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






7. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






8. State laws that regulate the offering and sale of securities.






9. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






10. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






11. Law that pertains to a particular nation (as opposed to international law).






12. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






13. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






14. The goods and services that domestic firms sell to buyers located in other countries.






15. Ownership rights in property - including the right to possess and control the property.






16. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






17. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






18. The act of transferring to another all or part of one's duties arising under a contract.






19. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






20. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






21. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






22. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






23. Any interest in personal property or fixtures that secures payment or performance of an obligation.






24. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






25. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






26. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






27. A person to whom a promise is made.






28. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






29. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






30. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






31. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






32. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






33. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






34. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






35. A party that holds a lien that is subordinate to one or more other liens on the same property.






36. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






37. A party to whom the rights under a contract are transferred - or assigned.






38. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






39. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






40. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






41. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






42. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






43. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






44. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.






45. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






46. A worldwide system in which foreign currencies are bought and sold.






47. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






48. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






49. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






50. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.