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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 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.






2. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






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






4. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






5. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






6. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






7. 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.






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






9. The term used to designate a person who has an ownership interest in a limited liability company.






10. 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






11. 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






12. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






13. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






14. 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.






15. 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






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






17. 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.






18. 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.






19. 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.






20. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






21. 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.






22. 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.






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






24. In a given state - a corporation that does business in - and is organized under the law of - that state.






25. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






26. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






27. A document by which title to property (usually real property) is passed.






28. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






29. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






30. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






31. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






32. 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






33. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






34. 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 -






35. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






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






37. The act of refraining from an action that one has a legal right to undertake.






38. The creation of an absolute or unconditional right or power.






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






40. 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






41. In a sale of goods - the express designation of the goods provided for in the contract.






42. 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.






43. Law that pertains to a particular nation (as opposed to international law).






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






45. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






46. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






47. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






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






49. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






50. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.