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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 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






3. 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






4. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






5. 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.






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






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






8. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






9. A person on the board of directors who is also an officer of the corporation.






10. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






11. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






12. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






13. 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.






14. 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






15. The relationship that exists between the promisor and the promisee of a contract.






16. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






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






18. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






19. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






20. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






21. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






22. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.






23. 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.






24. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






25. 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.






26. The purchase or sale of securities on the basis of information that has not been made available to the public.






27. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






28. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






29. The power of a government to take land from private citizens for public use on the payment of just compensation.






30. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






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






32. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.






33. An agreement by two or more persons to carry on - as co-owners - a business for profit.






34. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






35. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d






36. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






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






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






39. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






40. 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.






41. 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.






42. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






43. Charging an illegal rate of interest.






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






45. 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.






46. 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.






47. A set of governing rules adopted by a corporation or other association.






48. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






49. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






50. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.