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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. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






2. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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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 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.






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






6. 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.






7. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






8. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv






9. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






10. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






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






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






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






14. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






15. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






16. 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.






17. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






18. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.






19. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






20. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






21. 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






22. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






23. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






24. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






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






26. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






27. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






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






29. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






30. 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.






31. An agreement that creates or provides for a security interest between the debtor and a secured party.






32. A writ from a higher court asking the lower court for the record of a case.






33. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






34. A person who makes an offer.






35. 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.






36. A contract between the issuer of a bond and the bondholder.






37. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






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






39. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






40. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






41. 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






42. 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






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






44. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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






46. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






47. 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






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






49. 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.






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