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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 trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






2. 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






3. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






4. Property that is movable; any property that is not real property.






5. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






6. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






7. 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.






8. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






9. 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.






10. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.






11. The process of taking private property for public use through the government's power of eminent domain.






12. 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






13. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






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






15. Ownership rights in property - including the right to possess and control the property.






16. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






17. One to whom an obligation is owed.






18. Generally - the value given in return for a promise; involves two elements






19. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






20. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.






21. Moral principles and values applied to social behavior.






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






23. A contract having no legal force or binding effect.






24. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






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






26. A contract that has not as yet been fully performed.






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






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






29. 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.






30. 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






31. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






32. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.






33. A gift of personal property under a will.






34. Information or processes that give a business an advantage over competitors that do not know the information or processes.






35. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






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






37. 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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38. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






39. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






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






41. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






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






43. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






44. 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.






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






46. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






47. 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.






48. The legal avoidance - or setting aside - of a contractual obligation.






49. The geographic district in which a legal action is tried and from which the jury is selected.






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