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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. The act of accepting and giving legal force to an obligation that previously was not enforceable.






2. 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.






3. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






4. 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






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






6. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






7. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






8. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






9. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






10. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






11. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






12. 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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13. A contract having no legal force or binding effect.






14. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






15. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






16. 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.






17. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






18. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






19. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.






20. The image and overall appearance of a product






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






22. A revocable right or privilege of a person to come onto another person's land.






23. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






24. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






25. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






26. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






27. A party to whom the rights under a contract are transferred - or assigned.






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






29. A worldwide system in which foreign currencies are bought and sold.






30. 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.






31. A gift of personal property under a will.






32. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






33. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






34. 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.






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






36. One designated in a will to receive a gift of real property.






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






38. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






39. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






40. 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.






41. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






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






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. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






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






46. A crime committed on the Internet.






47. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






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






49. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






50. Procedurally - a defendant's response to the plaintiff's complaint.