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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. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






2. 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.






3. 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.






4. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201






5. 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






6. 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.'






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. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.


9. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






10. 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






11. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






12. 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






13. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






14. A contract between the issuer of a bond and the bondholder.






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






16. A suit brought by a shareholder to enforce a corporate cause of action against a third person.


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






18. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






19. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






20. 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.






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






22. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






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






24. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






25. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






26. One who makes and executes a will.






27. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






28. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






29. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






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






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






32. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






33. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






34. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






35. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






36. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






37. A legally recognized authority that can certify the validity of digital signatures.






38. 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.






39. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






40. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






41. A public official authorized to attest to the authenticity of signatures.






42. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.






43. 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.






44. 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.






45. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






46. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






47. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






48. 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.






49. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






50. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.