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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.
acceptance
preferred stock
mens rea
justiciable controversy
2. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.
stored-value card
outside director
conveyance
limited liability limited partnership (LLLP)
3. A contract between the issuer of a bond and the bondholder.
ethical reasoning
debtor in possession (DIP)
dissolution
bond indenture
4. 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.
collateral
product liability
risk management
collateral promise
5. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.
certificate of deposit (CD)
confiscation
penalty
distribution agreement
6. A person to whom a promise is made.
workers' compensation laws
whistleblowing
sole proprietorship
promisee
7. Property with which the owner has voluntarily parted and then cannot find or recover.
mislaid property
novation
tangible property
life estate
8. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.
bilateral contract
generally accepted accounting principles (GAAP)
categorical imperative
homestead exemption
9. 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.
counterclaim
security
limited liability limited partnership (LLLP)
lessee
10. 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.
tenancy by the entirety
copyright
mortgagee
liquidated debt
11. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
equal dignity rule
alien corporation
bailee
default
12. The act of accepting and giving legal force to an obligation that previously was not enforceable.
promise
tender
motion to dismiss
ratification
13. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.
dissociation
obligor
expropriation
surety
14. A person on the board of directors who is also an officer of the corporation.
international organization
consequential damages
leasehold estate
inside director
15. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.
browse-wrap terms
concurrent jurisdiction
cyberterrorist
bona fide occupational qualification (BFOQ)
16. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be
disclosed principal
indictment
insider trading
collateral promise
17. 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.
venture capital
mortgagee
check
lease
18. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim
covenant not to compete
bailor
debtor
mailbox rule
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
e-evidence
penalty
trademark
question of fact
20. A check - other than a certified check - that is presented for payment more than six months after its date.
stale check
discharge
shipment contract
investment company
21. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.
implied warranty of merchantability
working papers
insurable interest
bearer instrument
22. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.
signature
tangible property
nuncupative will
stock warrant
23. The basic document filed with a designated state official by which a limited partnership is formed.
employment discrimination
certificate of limited partnership
will substitutes
patent
24. 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.
incidental damages
holding company
articles of partnership
closed shop
25. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t
trade name
assignee
implied warranty of habitability
tender offer
26. The image and overall appearance of a product
trade dress
adhesion contract
preemptive rights
devisee
27. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
output contract
security interest
private equity capital
risk
28. 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.
fee simple absolute
condition
sovereign immunity
litigation
29. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.
certificate of deposit (CD)
adhesion contract
risk management
constructive trust
30. 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
tangible employment action
execution
tenancy by the entirety
cybernotary
31. 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.
domain name
ratification
motion for summary judgment
liquidated debt
32. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.
easement
blue laws
intestate
disclosed principal
33. The term used to designate a person who has an ownership interest in a limited liability company.
deficiency judgment
bona fide occupational qualification (BFOQ)
member
fixed-term tenancy
34. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.
quasi contract
covenant not to sue
holder
sales contract
35. A party to whom contractual obligations are transferred - or delegated.
nuncupative will
delegatee
petty offense
tombstone ad
36. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.
lease agreement
dumping
void contract
penalty
37. 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.
purchase-money security interest (PMSI)
lessee
mediation
distribution agreement
38. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.
reaffirmation agreement
stale check
information return
reply
39. 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.
incidental beneficiary
plea bargaining
shipment contract
reformation
40. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
outside director
assignee
nominal damages
partnering agreement
41. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.
covenant not to sue
limited liability company (LLC)
ethical reasoning
articles of partnership
42. Information or processes that give a business an advantage over competitors that do not know the information or processes.
small claims court
patent
trade secret
limited liability company (LLC)
43. A corporation whose shareholders are limited to a small group of persons - often including only family members.
corporation
trust
small claims court
close corporation
44. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued
imposter
cyber mark
writ of execution
promise
45. Having left a will at death.
security interest
testate
distribution agreement
corporate governance
46. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.
limited liability limited partnership (LLLP)
information return
installment contract
writ of execution
47. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.
crime
rule of four
white-collar crime
retained earnings
48. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.
bylaws
accredited investors
stock
debtor in possession (DIP)
49. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
piercing the corporate veil
inter vivos trust
adhesion contract
notary public
50. 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.
emancipation
limited liability company (LLC)
gift causa mortis
mailbox rule