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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 written agreement that sets forth each partner's rights and obligations with respect to the partnership.
testate
automatic stay
mirror image rule
articles of partnership
2. A contract that has been completely performed by both parties.
abandoned property
executed contract
community property
delegatee
3. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.
tender offer
document of title
limited partnership
reaffirmation agreement
4. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
reaffirmation agreement
cyber mark
anticipatory repudiation
information
5. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.
agreement
mutual fund
gift causa mortis
alternative dispute resolution (ADR)
6. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).
franchise
joint tenancy
leasehold estate
discharge
7. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.
levy
undisclosed principal
proxy
notary public
8. A designation in the United States for a corporation formed in another country but doing business in the United States.
alien corporation
administrator
federal question
insurance
9. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.
retained earnings
corporate social responsibility
smart card
consolidation
10. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.
record
respondeat superior
penalty
incidental damages
11. The process of resolving a dispute through the court system.
motion for judgment on the pleadings
articles of incorporation
necessaries
litigation
12. A person on the board of directors who does not hold a management position at the corporation.
sales contract
burglary
outside director
traveler's check
13. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha
I-551 Alien Registration Receipt
long arm statute
lease
right-to-work law
14. 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.
accredited investors
promisor
nominal damages
impossibility of performance
15. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical
merger
principle of rights
breach of contract
third party beneficiary
16. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.
cybernotary
impossibility of performance
fixture
payee
17. The relationship that exists between the promisor and the promisee of a contract.
domain name
affirmative action
privity of contract
felony
18. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.
conveyance
underwriter
diversity of citizenship
preferred creditor
19. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).
security
destination contract
mortgagee
trust
20. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.
tangible property
insurance
consent
fungible goods
21. A trademark in cyberspace.
incidental beneficiary
voir dire
cyber mark
identification
22. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.
closed shop
confiscation
summons
constructive eviction
23. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.
eviction
levy
quasi contract
motion for a directed verdict
24. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.
objective theory of contracts
bylaws
fictitious payee
maker
25. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.
seniority system
discovery
legatee
litigation
26. 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.
emancipation
bearer instrument
motion for judgment n.o.v.
output contract
27. A contract between an employer and an employee in which the terms and conditions of employment are stated.
pass-through entity
alien corporation
levy
employment contract
28. 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
testator
limited partner
deposition
watered stock
29. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).
apparent authority
liquidated debt
unenforceable contract
maker
30. Any voluntary transfer of property made without consideration - past or present.
concurrent ownership
e-evidence
gift
petty offense
31. Any bank handling an item for collection - except the payor bank.
power of attorney
discharge
motion for a new trial
collecting bank
32. A set of governing rules adopted by a corporation or other association.
bylaws
negotiation
implied warranty of habitability
stock certificate
33. 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.
will
condition subsequent
diversity of citizenship
partially disclosed principal
34. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.
fiduciary
probable cause
testamentary trust
clearinghouse
35. The image and overall appearance of a product
counterclaim
self-incrimination
trade dress
tender of delivery
36. A charge by a grand jury that a named person has committed a crime.
unreasonably dangerous product
indictment
corporate social responsibility
execution
37. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.
motion for summary judgment
cyberterrorist
lease
bilateral contract
38. An implied promise by a landlord that rented residential premises are fit for human habitation
limited liability limited partnership (LLLP)
offer
implied warranty of habitability
counterclaim
39. 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
financing statement
security agreement
civil law system
condition
40. In the context of real property - an interest in land that does not include any right to possess the property.
articles of organization
dissolution
nonpossessory interest
gift
41. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.
default judgment
securities
vesting
security
42. The bank on which a check is drawn (the drawee bank).
charitable trust
payor bank
online dispute resolution (ODR)
bilateral mistake
43. The idea that corporations can and should act ethically and be accountable to society for their actions.
bond
corporate social responsibility
vesting
prenuptial agreement
44. A corporation whose shareholders are limited to a small group of persons - often including only family members.
close corporation
condemnation
articles of organization
per stirpes
45. A person who makes an offer.
novation
common stock
offeror
implied warranty
46. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.
rescission
output contract
actus reus
per capita
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
service mark
writ of execution
unreasonably dangerous product
long arm statute
48. 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
delegator
operating agreement
power of attorney
constructive delivery
49. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
Federal Reserve System
right of reimbursement
holographic will
private equity capital
50. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
generally accepted auditing standards (GAAS)
implied warranty
per capita
inside director