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






2. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






3. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






4. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






5. A written - temporary insurance policy.






6. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






7. 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






8. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






9. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






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






11. 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






12. A will written entirely in the signer's handwriting and usually not witnessed.






13. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






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






15. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t






16. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






17. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






18. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






19. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






20. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201






21. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






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






23. 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.






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






25. Information or processes that give a business an advantage over competitors that do not know the information or processes.






26. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






27. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.






28. 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.






29. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






30. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued






31. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






32. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






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






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






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






36. A person who makes an offer.






37. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






38. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






39. 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.






40. A type of limited liability partnership owned by family members or fiduciaries of family members.






41. A designation in the United States for a corporation formed in another country but doing business in the United States.






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. One to whom goods are entrusted by a bailor.






44. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






45. A person to whom an instrument is made payable.






46. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






47. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






48. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






49. 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.






50. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.