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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 mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






2. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






3. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






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






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






6. A crime committed on the Internet.






7. 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.






8. 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






9. 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.






10. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio






11. 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.






12. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






13. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






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






15. One to whom an obligation is owed.






16. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






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






18. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






19. 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






20. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






21. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






22. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






23. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






24. Joint ownership.






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






26. 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.






27. The idea that corporations can and should act ethically and be accountable to society for their actions.






28. Reasonable grounds for believing that a person should be arrested or searched.






29. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






30. An assertion that something either will or will not happen in the future.






31. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






32. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






33. A crime






34. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






35. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






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






37. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






38. A state law providing that employees may not be required to join a union as a condition of retaining employment.






39. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






40. A contract in which the terms of the agreement are stated in words - oral or written.






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






42. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






43. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.






44. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






45. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






46. The number of members of a decision-making body that must be present before business may be transacted.






47. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






48. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






49. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






50. 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.