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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. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






2. The act of transferring to another all or part of one's duties arising under a contract.






3. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






4. A state statute under which certain types of contracts must be in writing to be enforceable.






5. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






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






7. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






8. A crime committed on the Internet.






9. 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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10. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






11. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






12. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






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






14. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






15. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






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






17. The process of proving and validating a will and settling all matters pertaining to an estate.






18. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






19. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






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






21. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






22. A person who makes an offer.






23. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






24. A contract that has not as yet been fully performed.






25. 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.






26. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






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






28. The image and overall appearance of a product






29. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






30. An agreement by two or more persons to carry on - as co-owners - a business for profit.






31. A document by which title to property (usually real property) is passed.






32. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






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






34. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.






35. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






36. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






37. A landlord's act of depriving a tenant of possession of the leased premises.






38. 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.'






39. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






40. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t






41. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






42. Law that pertains to a particular nation (as opposed to international law).






43. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






44. 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






45. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






46. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






47. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






48. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






49. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






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