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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 designation in the United States for a corporation formed in another country but doing business in the United States.






2. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






3. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






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






5. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






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






7. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






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






9. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.






10. 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).






11. 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






12. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.






13. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






14. All forms of personal property.






15. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.






16. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






17. A promise or commitment to perform or refrain from performing some specified act in the future.






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






19. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w






20. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f






21. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






22. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






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






24. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.






25. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






26. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






27. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






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






29. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






30. 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.






31. In a sale of goods - the express designation of the goods provided for in the contract.






32. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.






33. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






34. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






35. A person to whom a promise is made.






36. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






37. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






38. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






39. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






40. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






41. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.






42. 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.






43. The document filed with a designated state official by which a limited liability company is formed.






44. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






45. 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






46. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






47. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






48. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






49. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






50. Within a specified time period or - if no period is specified - within a reasonable time.