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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. 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.






2. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






3. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






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






5. Charging an illegal rate of interest.






6. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






7. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






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






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






11. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






12. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






13. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be






14. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






15. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






16. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






17. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






18. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






19. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






20. 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.






21. The first bank to receive a check for payment.






22. Any bank handling an item for collection - except the payor bank.






23. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






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






25. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






26. Property with which the owner has voluntarily parted - with no intention of recovering it.






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






28. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






29. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






30. The number of members of a decision-making body that must be present before business may be transacted.






31. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






32. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






33. 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






34. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






35. 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.






36. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






37. 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






38. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






39. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






40. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






41. One to whom goods are entrusted by a bailor.






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






43. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






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






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






46. A person who makes an offer.






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






48. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






49. 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.






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