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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 person who makes an offer.






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

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3. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






4. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






5. A person who makes a promise.






6. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






7. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






8. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






9. A public official authorized to attest to the authenticity of signatures.






10. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






11. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






12. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






13. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






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






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






16. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






17. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






18. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






19. 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.






20. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






21. Barred - impeded - or precluded.






22. 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.






23. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






24. A crime committed on the Internet.






25. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






26. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






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






28. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






29. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






30. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






31. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






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






33. 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.






34. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






35. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






36. 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.






37. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






38. Standards concerning an auditor's professional qualities and the judgment exercised by him or her in the performance of an audit and report. The source of the standards is the American Institute of Certified Public Accountants.






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






40. 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.






41. A case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a case in which the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence to dispr






42. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






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






44. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






45. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






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






47. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w






48. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






49. One to whom an obligation is owed.






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