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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 merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






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






3. An order by a bank customer to his or her bank not to pay or certify a certain check.






4. 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.






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






6. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






7. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






8. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






9. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






10. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






11. 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.






12. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






13. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






14. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






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






16. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






17. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






18. 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






19. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






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






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






22. 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.






23. In a given state - a corporation that does business in - and is organized under the law of - that state.






24. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






25. 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






26. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






27. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






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






29. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






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






31. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.






32. A contract between the issuer of a bond and the bondholder.






33. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.






34. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.






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






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






37. 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.






38. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






39. A person who receives inside information.






40. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






41. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






42. Any bank handling an item for collection - except the payor bank.






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






44. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






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






46. 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






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






48. 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






49. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






50. 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






Can you answer 50 questions in 15 minutes?



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