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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. 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.






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






3. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.






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






5. 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.






6. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






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. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






9. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






10. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






11. A type of contract that arises when a promise is given in exchange for a return promise.






12. A contract that is formed electronically.






13. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






14. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






15. 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.






16. 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






17. A state law providing that employees may not be required to join a union as a condition of retaining employment.






18. A company whose business activity is holding shares in another company.






19. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






20. 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.






21. 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.






22. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






23. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






24. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






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






26. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






27. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






28. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






29. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






30. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






31. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






32. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






33. 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.






34. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






35. 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.






36. One who entrusts goods to a bailee.






37. 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






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






39. 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.






40. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






41. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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42. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






43. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






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






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

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46. 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.






47. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






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






49. 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.






50. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.