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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. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






2. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






3. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






4. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






5. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.






6. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






7. The basic document filed with a designated state official by which a limited partnership is formed.






8. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






9. One to whom goods are entrusted by a bailor.






10. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






11. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






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






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






14. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






15. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






16. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.






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






18. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






19. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






20. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






21. 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.






22. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






23. A person on the board of directors who does not hold a management position at the corporation.






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






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






26. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.






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






28. The term used to designate a person who has an ownership interest in a limited liability company.






29. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






30. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






31. 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.






32. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.






33. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






34. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






35. 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.






36. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






37. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






38. Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender - national origin - and religion - but not race.






39. The process of taking private property for public use through the government's power of eminent domain.






40. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






41. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






42. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






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






44. Charging an illegal rate of interest.






45. 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.






46. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






47. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






48. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






49. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






50. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.