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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. 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.






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






3. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






4. 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.






5. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






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






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






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






9. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






10. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






11. A corporation whose shareholders are limited to a small group of persons - often including only family members.






12. 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.






13. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






14. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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15. 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.






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






17. 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.






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






19. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






20. A gift of personal property by will (from the verb to bequeath).






21. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






22. The act of stealing another's identifying information






23. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






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






25. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






26. 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.






27. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






28. A person appointed by a testator in a will to see that her or his will is administered appropriately.






29. 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.






30. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






31. 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.






32. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






33. One who makes and executes a will.






34. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






35. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






36. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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37. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






38. A contract having no legal force or binding effect.






39. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






40. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






41. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






42. 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.






43. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






44. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






45. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






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






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






48. A contract that is formed electronically.






49. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






50. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.