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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 written agreement that sets forth each partner's rights and obligations with respect to the partnership.






2. A contract that has been completely performed by both parties.






3. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






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






5. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.






6. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).






7. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






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






9. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






10. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






11. The process of resolving a dispute through the court system.






12. A person on the board of directors who does not hold a management position at the corporation.






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. 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.






15. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






16. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.






17. The relationship that exists between the promisor and the promisee of a contract.






18. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






19. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






20. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.






21. A trademark in cyberspace.






22. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






23. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






24. 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.






25. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






26. 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.






27. A contract between an employer and an employee in which the terms and conditions of employment are stated.






28. 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






29. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






30. Any voluntary transfer of property made without consideration - past or present.






31. Any bank handling an item for collection - except the payor bank.






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






33. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






34. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






35. The image and overall appearance of a product






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






37. 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.






38. An implied promise by a landlord that rented residential premises are fit for human habitation






39. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






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






41. 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.






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






43. The idea that corporations can and should act ethically and be accountable to society for their actions.






44. A corporation whose shareholders are limited to a small group of persons - often including only family members.






45. A person who makes an offer.






46. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






47. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






48. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






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






50. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.