Test your basic knowledge |

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. Property that is movable; any property that is not real property.






2. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






3. A set of policies or procedures affecting the way a corporation is directed or controlled.






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






5. Generally - the value given in return for a promise; involves two elements






6. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






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






8. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






9. Any voluntary transfer of property made without consideration - past or present.






10. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






11. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






12. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.






13. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






14. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






15. Land and everything attached to it - such as trees and buildings.






16. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






17. A case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a case in which the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence to dispr






18. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






19. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






20. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






21. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






22. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






23. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






24. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






25. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






26. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






27. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






28. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






29. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






30. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






31. The act of accepting and giving legal force to an obligation that previously was not enforceable.






32. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






33. A trust that is created by will and therefore does not take effect until the death of the testator.






34. A contract that does not require a specified form or formality to be valid.






35. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






36. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






37. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a






38. Joint ownership.






39. In a given state - a corporation that does business in the state without being incorporated therein.






40. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






41. A contract that is formed electronically.






42. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






43. A contract that has not as yet been fully performed.






44. 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






45. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






46. A person who makes an offer.






47. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






48. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






49. A document by which title to property (usually real property) is passed.






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