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






2. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






3. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






4. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






5. A charge by a grand jury that a named person has committed a crime.






6. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






7. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






8. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






9. A contract that has been completely performed by both parties.






10. 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.






11. 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






12. The passing of title to property from the seller to the buyer for a price.






13. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.






14. 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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15. 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.






16. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






17. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






18. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






19. 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.






20. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






21. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






22. A will written entirely in the signer's handwriting and usually not witnessed.






23. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






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






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






26. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






27. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






28. 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.






29. The process of resolving a dispute through the court system.






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






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






32. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






33. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'






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






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






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






37. A set of policies or procedures affecting the way a corporation is directed or controlled.






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






39. Property resulting from intellectual - creative processes.






40. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






41. 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.






42. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






43. A provision in a contract stipulating that certain unforeseen events






44. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






45. 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.






46. 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






47. 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.






48. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






49. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






50. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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