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






2. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






3. 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.






4. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.






5. 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






6. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.






7. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






8. One designated in a will to receive a gift of personal property.






9. The use of an asset that is not the subject of a loan to collateralize that loan.






10. 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.






11. Joint ownership.






12. 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.






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






14. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






15. 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.






16. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






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






18. A person in possession of an instrument payable to bearer or indorsed in blank.






19. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






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 old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






22. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






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






24. The process of proving and validating a will and settling all matters pertaining to an estate.






25. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.






26. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






27. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






28. 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






29. 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.






30. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






31. The process of resolving a dispute through the court system.






32. In a sale of goods - the express designation of the goods provided for in the contract.






33. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






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






35. 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.






36. 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.






37. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






38. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






39. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






40. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






41. A contract that by law requires a specific form - such as being executed under seal - for its validity.






42. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.






43. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






44. A contract that has been completely performed by both parties.






45. Barred - impeded - or precluded.






46. A public official authorized to attest to the authenticity of signatures.






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






48. The image and overall appearance of a product






49. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






50. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.