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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.
reply
implied warranty of fitness for a particular purpose
confiscation
sexual harassment
2. One to whom goods are entrusted by a bailor.
estate in property
foreign corporation
bailee
petition in bankruptcy
3. 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.
business ethics
commingle
lease
promissory note
4. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.
dividend
commercial impracticability
forum-selection clause
identity theft
5. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.
devise
security agreement
peer-to-peer (P2P) networking
policy
6. The use of an asset that is not the subject of a loan to collateralize that loan.
forgery
lease agreement
dissolution
cross-collateralization
7. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.
bona fide occupational qualification (BFOQ)
federal question
U.S. trustee
docket
8. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).
estopped
proxy
minimum wage
alienation
9. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.
motion for judgment n.o.v.
piercing the corporate veil
consideration
unilateral mistake
10. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
identity theft
jurisdiction
smart card
consent
11. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab
acceptance
voir dire
stop-payment order
product liability
12. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.
dissolution
stop-payment order
lease
tenancy at will
13. A contract that does not require a specified form or formality to be valid.
fee simple
dishonor
informal contract
installment contract
14. In a sale of goods - the express designation of the goods provided for in the contract.
informal contract
blue sky laws
workers' compensation laws
identification
15. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
implied warranty
arbitration clause
generally accepted accounting principles (GAAP)
probable cause
16. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.
acceleration clause
policy
fiduciary
information return
17. 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.
appraisal right
double jeopardy
objective theory of contracts
complaint
18. Property with which the owner has voluntarily parted - with no intention of recovering it.
abandoned property
smart card
right-to-work law
artisan's lien
19. 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.
shelter principle
exculpatory clause
purchase-money security interest (PMSI)
obligee
20. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
writ of attachment
normal trade relations (NTR) status
bankruptcy court
resulting trust
21. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.
output contract
performance
incidental damages
ratification
22. 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
vesting
ethical reasoning
insolvent
obligee
23. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.
search warrant
preferred stock
jurisdiction
bailor
24. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.
right of contribution
security interest
liquidation
requirements contract
25. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
preferred creditor
motion for a directed verdict
shipment contract
dumping
26. 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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27. 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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28. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.
U.S. trustee
exclusionary rule
preemptive rights
property
29. 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
actus reus
testator
arson
deposition
30. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
cram-down provision
mortgagee
extension clause
covenant not to sue
31. A charge by a grand jury that a named person has committed a crime.
covenant not to sue
necessaries
distribution agreement
indictment
32. 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.
trademark
summons
employment contract
corporate social responsibility
33. A person to whom a promise is made.
promisee
tangible employment action
discovery
actus reus
34. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.
collective mark
life estate
employment at will
cyber mark
35. Property with which the owner has voluntarily parted and then cannot find or recover.
generally accepted accounting principles (GAAP)
mislaid property
forbearance
fungible goods
36. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
performance
felony
floating lien
consolidation
37. 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.
probate court
negotiable instrument
breach of contract
Federal Reserve System
38. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.
patent
consent
watered stock
bylaws
39. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).
penalty
per stirpes
document of title
frustration of purpose
40. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib
implied warranty of habitability
security interest
limited partner
default
41. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
per capita
discharge
force majeure clause
legatee
42. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.
commingle
contract
employment at will
integrated contract
43. A revocable right or privilege of a person to come onto another person's land.
exculpatory clause
license
foreign exchange market
voir dire
44. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.
mutual fund
small claims court
financing statement
legacy
45. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.
impossibility of performance
franchise
sale on approval
insurable interest
46. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t
surety
commercial impracticability
nuncupative will
reaffirmation agreement
47. Having left a will at death.
testate
self-incrimination
right-to-work law
articles of partnership
48. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau
mailbox rule
identification
rescission
holder in due course (HDC)
49. A landlord's act of depriving a tenant of possession of the leased premises.
offeree
tenancy at will
eviction
eminent domain
50. The term used to designate a person who has an ownership interest in a limited liability company.
covenant not to sue
member
accredited investors
intellectual property