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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 payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






2. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.






3. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






4. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






5. 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






6. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






7. Property with which the owner has voluntarily parted - with no intention of recovering it.






8. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






9. 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.






10. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






11. A trademark in cyberspace.






12. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






13. Property that is acquired by the debtor after the execution of a security agreement.






14. A designation in the United States for a corporation formed in another country but doing business in the United States.






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






16. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






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






18. 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






19. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






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






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






22. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.






23. 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






24. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






25. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






26. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.






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






28. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio






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






30. 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.






31. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






32. The geographic district in which a legal action is tried and from which the jury is selected.






33. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






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






35. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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36. In the context of real property - an interest in land that does not include any right to possess the property.






37. An employer's termination of an employee's employment in violation of the law.






38. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






39. A person to whom an instrument is made payable.






40. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






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






42. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






43. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv






44. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






45. 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.






46. One designated in a will to receive a gift of real property.






47. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.






48. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






49. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






50. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.