Test your basic knowledge |

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






2. 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.






3. A person in possession of an instrument payable to bearer or indorsed in blank.






4. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






5. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






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






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






8. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






9. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






10. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






11. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






12. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






13. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






14. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.






15. 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.






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






17. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






18. A prediction concerning potential loss based on known and unknown factors.






19. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






20. State laws that regulate the offering and sale of securities.






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






22. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.






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






24. Goods that conform to contract specifications.






25. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






26. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con






27. 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






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






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






30. 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.






31. A writ from a higher court asking the lower court for the record of a case.






32. 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.






33. 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






34. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






35. 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.






36. A person on the board of directors who does not hold a management position at the corporation.






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






38. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






39. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






40. 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






41. 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).






42. 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.






43. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






44. 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.






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






46. A check - other than a certified check - that is presented for payment more than six months after its date.






47. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






48. 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.






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






50. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'