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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. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






2. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






3. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






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






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






6. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






7. 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.






8. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






9. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






10. 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.






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






12. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






13. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






14. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






15. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






16. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






17. 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.






18. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






19. An assertion that something either will or will not happen in the future.






20. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






21. Property that is movable; any property that is not real property.






22. The act of transferring to another all or part of one's duties arising under a contract.






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






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






25. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






26. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






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






28. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






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






30. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






31. The idea that corporations can and should act ethically and be accountable to society for their actions.






32. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






33. Joint ownership.






34. 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.






35. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






36. 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






37. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






38. 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.






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






40. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






41. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






42. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






43. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued






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






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






46. Generally - the value given in return for a promise; involves two elements






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






48. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






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






50. 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.