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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 absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






2. 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.






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






4. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






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






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






7. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






8. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






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






10. A person on the board of directors who is also an officer of the corporation.






11. The bank on which a check is drawn (the drawee bank).






12. 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.






13. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






14. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






15. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






16. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.






17. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a






18. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






19. An agreement by two or more persons to carry on - as co-owners - a business for profit.






20. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






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






22. Having left a will at death.






23. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






24. A set of policies or procedures affecting the way a corporation is directed or controlled.






25. 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.






26. Charging an illegal rate of interest.






27. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






28. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






29. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






30. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






31. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






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






33. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






34. A person who makes a promise.






35. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






36. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






37. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






38. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






39. A contract in which one party forfeits the right to pursue a legal claim against the other party.






40. 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.






41. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






42. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






43. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






44. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






45. The geographic district in which a legal action is tried and from which the jury is selected.






46. 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.






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






48. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






49. One who entrusts goods to a bailee.






50. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p