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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.
third party beneficiary
computer crime
red herring prospectus
ethical reasoning
2. The act of refraining from an action that one has a legal right to undertake.
covenant not to compete
copyright
valid contract
forbearance
3. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.
estate in property
U.S. trustee
fee simple
property
4. 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.
sole proprietorship
franchise
summary jury trial (SJT)
bylaws
5. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.
grand jury
employment discrimination
deficiency judgment
certificate of limited partnership
6. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.
rule of four
right-to-work law
binder
foreign corporation
7. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a
sale on approval
common stock
minimum wage
codicil
8. 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
generally accepted accounting principles (GAAP)
foreign exchange market
trademark
information return
9. Goods that conform to contract specifications.
stop-payment order
conforming goods
free-writing prospectus
covenant not to sue
10. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.
limited liability company (LLC)
express contract
bankruptcy court
drawer
11. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.
trade secret
creditors' composition agreement
union shop
motion for summary judgment
12. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.
exclusionary rule
recording statutes
imposter
bounty payment
13. The purchase or sale of securities on the basis of information that has not been made available to the public.
insider trading
search warrant
blue laws
ethics
14. One who owes an obligation to another.
course of dealing
express warranty
parent-subsidiary merger
obligor
15. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.
void contract
community property
award
promisee
16. Jurisdiction that exists when a case can be heard only in a particular court or type of court.
bond indenture
proxy
exclusive jurisdiction
articles of organization
17. A contract in which the terms of the agreement are stated in words - oral or written.
intended beneficiary
articles of incorporation
express contract
summons
18. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t
interrogatories
expropriation
trade name
prospectus
19. 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.
motion for a new trial
exclusive jurisdiction
brief
consequential damages
20. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.
motion for judgment n.o.v.
beyond a reasonable doubt
promissory note
condition precedent
21. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina
executed contract
guarantor
novation
white-collar crime
22. In a sale of goods - the express designation of the goods provided for in the contract.
identification
holder in due course (HDC)
summons
tangible property
23. 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
bilateral contract
probable cause
negotiation
forum-selection clause
24. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen
diversity of citizenship
trade name
impossibility of performance
bond indenture
25. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.
express warranty
peer-to-peer (P2P) networking
automatic stay
foreign corporation
26. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'
tenancy by the entirety
letter of credit
mediation
taking
27. One to whom goods are entrusted by a bailor.
prospectus
cyber crime
principle of rights
bailee
28. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.
confusion
moral minimum
expropriation
security
29. 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.
homestead exemption
member
reaffirmation agreement
administrator
30. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.
comity
floating lien
prospectus
duress
31. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
license
motion for a directed verdict
nominal damages
express warranty
32. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.
workout
mailbox rule
litigation
identity theft
33. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.
promissory estoppel
depositary bank
petty offense
nominal damages
34. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.
larceny
arbitration clause
universal defenses
fictitious payee
35. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.
cover
double jeopardy
close corporation
valid contract
36. 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
undisclosed principal
trade name
export
check
37. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a
specific performance
merchant
underwriter
plea bargaining
38. The act of accepting and giving legal force to an obligation that previously was not enforceable.
default judgment
e-signature
ratification
summary jury trial (SJT)
39. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.
tenancy by the entirety
investment contract
personal property
attachment
40. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.
forum-selection clause
insurable interest
financing statement
special warranty deed
41. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.
gift inter vivos
commingle
dumping
exclusive distributorship
42. A trademark in cyberspace.
national law
brief
cyber mark
condition subsequent
43. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.
categorical imperative
generally accepted accounting principles (GAAP)
payor bank
personal defenses
44. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
workout
writ of attachment
discharge
unconscionable contract or clause
45. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued
information
burglary
writ of execution
commingle
46. 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.
leasehold estate
junior lienholder
good faith purchaser
emancipation
47. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.
generally accepted accounting principles (GAAP)
devise
mislaid property
indorsement
48. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.
privity of contract
conveyance
fee simple absolute
small claims court
49. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
arbitration clause
arbitration
consolidation
condition subsequent
50. Property with which the owner has involuntarily parted and then cannot find or recover.
anticipatory repudiation
online dispute resolution (ODR)
lost property
personal defenses