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. 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






2. 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






3. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






4. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






5. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






6. A formal legal document prepared by a party's attorney and submitted to an appellate court when a case is appealed - which outlines the facts and issues of the case that are in dispute.






7. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






8. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f






9. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






10. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






11. A person on the board of directors who is also an officer of the corporation.






12. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






13. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






14. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






15. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






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






17. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






18. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






19. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






20. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






21. An agreement that creates or provides for a security interest between the debtor and a secured party.






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






23. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






24. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






25. Standards concerning an auditor's professional qualities and the judgment exercised by him or her in the performance of an audit and report. The source of the standards is the American Institute of Certified Public Accountants.






26. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






27. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






28. 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






29. 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






30. 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.






31. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






32. 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.






33. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






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






35. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






36. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






37. The bank on which a check is drawn (the drawee bank).






38. A gift of personal property under a will.






39. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






40. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






41. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






42. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






43. A set limit on the amount of goods that can be imported.






44. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






45. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






46. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






47. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






48. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






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






50. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.