Test your basic knowledge |

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 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.






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






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






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






5. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






6. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






7. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






8. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






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






10. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






11. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






12. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






13. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






14. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






15. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






16. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






17. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






18. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






19. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






20. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






21. 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






22. The bank on which a check is drawn (the drawee bank).






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






24. A trust that is created by will and therefore does not take effect until the death of the testator.






25. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






26. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






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






28. A set limit on the amount of goods that can be imported.






29. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






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






31. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






32. Land and everything attached to it - such as trees and buildings.






33. An order by a bank customer to his or her bank not to pay or certify a certain check.






34. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






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






36. 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






37. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






38. A revocable right or privilege of a person to come onto another person's land.






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






40. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






41. 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






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






43. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






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






45. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






46. 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.






47. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






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






49. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.






50. A type of limited liability partnership owned by family members or fiduciaries of family members.