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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.
inter vivos trust
valid contract
estate in property
insurable interest
2. A worldwide system in which foreign currencies are bought and sold.
Statute of Frauds
predominant-factor test
civil law system
foreign exchange market
3. 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.
mislaid property
exclusive distributorship
secured transaction
order for relief
4. 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.
deficiency judgment
limited liability limited partnership (LLLP)
continuation statement
tender
5. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau
e-contract
binder
holder in due course (HDC)
stale check
6. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.
predominant-factor test
motion for a new trial
shelter principle
right of subrogation
7. An assertion that something either will or will not happen in the future.
limited liability company (LLC)
corporation
promise
traveler's check
8. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.
express contract
mislaid property
deficiency judgment
actus reus
9. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.
e-money
lease agreement
notary public
self-incrimination
10. A corporation whose shareholders are limited to a small group of persons - often including only family members.
tenancy by the entirety
close corporation
guarantor
mislaid property
11. The first bank to receive a check for payment.
depositary bank
wrongful discharge
generally accepted accounting principles (GAAP)
consequential damages
12. Property with which the owner has voluntarily parted and then cannot find or recover.
sovereign immunity
minimum wage
mislaid property
collective mark
13. Land and everything attached to it - such as trees and buildings.
license
real property
specific performance
choice-of-law clause
14. The basic document filed with a designated state official by which a limited partnership is formed.
certificate of limited partnership
dissolution
partnership
condition precedent
15. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.
abandoned property
draft
insurable interest
implied warranty of fitness for a particular purpose
16. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.
ethical reasoning
adhesion contract
dumping
Statute of Frauds
17. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.
power of attorney
international law
alienation
quitclaim deed
18. A public official authorized to attest to the authenticity of signatures.
negotiable instrument
I-9 verification
notary public
tangible property
19. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.
I-551 Alien Registration Receipt
self-defense
Regulation E
devisee
20. A tax on imported goods.
underwriter
dishonor
premium
tariff
21. 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.
junior lienholder
bylaws
good faith purchaser
respondeat superior
22. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -
creditors' composition agreement
imposter
adverse possession
tombstone ad
23. 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.
bond indenture
sales contract
exclusive distributorship
reformation
24. The bank on which a check is drawn (the drawee bank).
discharge
payor bank
reformation
garnishment
25. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.
devise
partnership
act of state doctrine
security
26. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.
certificate of deposit (CD)
adhesion contract
acceptance
robbery
27. 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
financing statement
discovery
parol evidence rule
emancipation
28. 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.
rule of four
mirror image rule
bailor
exclusive jurisdiction
29. Any bank handling an item for collection - except the payor bank.
output contract
collecting bank
right of subrogation
liquidated debt
30. 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.
patent
certified check
delegatee
default judgment
31. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.
financing statement
retained earnings
signature
limited liability partnership (LLP)
32. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.
adhesion contract
smart card
pledge
comity
33. 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.
e-contract
motion for a new trial
right of subrogation
quitclaim deed
34. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.
distributed network
gift inter vivos
prenuptial agreement
dominion
35. 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.
overdraft
motion for summary judgment
profit
cram-down provision
36. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.
counteroffer
ratification
respondeat superior
judicial review
37. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.
mortgagor
pleadings
devisee
consignment
38. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.
intermediary bank
promisee
past consideration
petty offense
39. 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
preference
risk
merger
constructive trust
40. A suit brought by a shareholder to enforce a corporate cause of action against a third person.
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41. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'
delegator
lessee
testamentary trust
order instrument
42. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.
implied warranty of merchantability
plea bargaining
insider trading
condition
43. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit
venue
bounty payment
normal trade relations (NTR) status
letter of credit
44. A party to whom contractual obligations are transferred - or delegated.
resulting trust
merchant
delegatee
discovery
45. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).
community property
delegator
insurable interest
garnishment
46. The act of transferring to another all or part of one's rights arising under a contract.
administrator
assignment
tenancy at sufferance
accord and satisfaction
47. An employer's termination of an employee's employment in violation of the law.
wrongful discharge
question of fact
click-on agreement
unenforceable contract
48. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
consent
trade name
risk management
writ of certiorari
49. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.
perfection
requirements contract
white-collar crime
certification mark
50. A company whose business activity is holding shares in another company.
attachment
will
holding company
stock certificate