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






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 clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






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






5. A worldwide system in which foreign currencies are bought and sold.






6. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






7. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






8. 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






9. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






10. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






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






12. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






13. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






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






15. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






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






17. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






18. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






19. An equity (ownership) interest in a corporation - measured in units of shares.






20. A type of contract that arises when a promise is given in exchange for a return promise.






21. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






22. A designation in the United States for a corporation formed in another country but doing business in the United States.






23. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






24. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






25. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






26. A state statute under which certain types of contracts must be in writing to be enforceable.






27. A legally recognized authority that can certify the validity of digital signatures.






28. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






29. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






30. 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






31. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






32. An estate in realty held by a tenant under a lease. In every leasehold estate - the tenant has a qualified right to possess and/or use the land.






33. 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






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






35. The authority of a court to hear and decide a specific case.






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






37. An implied promise by a landlord that rented residential premises are fit for human habitation






38. 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






39. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






40. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






41. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






42. 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






43. A revocable right or privilege of a person to come onto another person's land.






44. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






45. A person to whom a promise is made.






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






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






48. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






49. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.






50. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.