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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 warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil






2. 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.'






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






4. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






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






6. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.






7. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






8. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






9. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






10. 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.






11. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






12. 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.






13. A person who makes an offer.






14. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






15. 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.






16. 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.






17. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






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






19. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






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






21. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






22. Any interest in personal property or fixtures that secures payment or performance of an obligation.






23. 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






24. 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






25. An equitable remedy requiring exactly the performance that was specified; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique.






26. 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.






27. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






28. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






29. Property that is movable; any property that is not real property.






30. The process of taking private property for public use through the government's power of eminent domain.






31. 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.'






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






33. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






34. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






35. 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.






36. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.






37. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






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






39. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






40. 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.






41. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






42. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






43. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






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






45. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






46. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






47. The first bank to receive a check for payment.






48. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






49. A check - other than a certified check - that is presented for payment more than six months after its date.






50. In a given state - a corporation that does business in the state without being incorporated therein.