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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. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o
appraisal right
dissolution
mislaid property
installment contract
2. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.
embezzlement
codicil
writ of execution
continuation statement
3. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.
condemnation
SEC Rule 10b-5
promissory note
levy
4. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.
limited liability company (LLC)
tenancy at sufferance
counteroffer
abandoned property
5. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.
workout
nuncupative will
shipment contract
cross-collateralization
6. 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
implied warranty
disparate-treatment discrimination
common stock
release
7. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
drawer
lessor
joint and several liability
universal defenses
8. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.
obligee
e-contract
legacy
personal defenses
9. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.
underwriter
predominant-factor test
security interest
burglary
10. Barred - impeded - or precluded.
estopped
insurable interest
administrator
burglary
11. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.
exculpatory clause
agency
homestead exemption
trade dress
12. A revocable right or privilege of a person to come onto another person's land.
intellectual property
lease
foreign corporation
license
13. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).
bond
minimum wage
consumer-debtor
bailee
14. A person to whom a promise is made.
money laundering
promisee
copyright
duress
15. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.
comity
testator
recording statutes
family limited liability partnership (FLLP)
16. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.
partnering agreement
drawer
generally accepted accounting principles (GAAP)
petition in bankruptcy
17. 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
proceeds
I-551 Alien Registration Receipt
sale
offer
18. 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.
domestic corporation
choice-of-language clause
tombstone ad
promissory note
19. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.
backdating
tenancy at sufferance
identification
federal question
20. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.
takeover
distribution agreement
intestacy laws
respondeat superior
21. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.
replevin
respondeat superior
course of performance
justiciable controversy
22. 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.
tombstone ad
service mark
employment contract
alien corporation
23. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.
acceptor
dumping
holder
pass-through entity
24. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.
domain name
tenancy at will
constructive discharge
forgery
25. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.
litigation
disparate-impact discrimination
implied warranty of habitability
lien
26. 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
past consideration
fungible goods
dominion
utilitarianism
27. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.
comity
gift inter vivos
corporate social responsibility
correspondent bank
28. 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.
agency
acceptance
spendthrift trust
sale on approval
29. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
corporate social responsibility
intended beneficiary
mortgagor
condition
30. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.
accord and satisfaction
prospectus
closed shop
offeror
31. A contract that by law requires a specific form - such as being executed under seal - for its validity.
formal contract
liquidated damages
corporate governance
choice-of-language clause
32. 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.'
e-signature
preferred stock
secondary boycott
franchise
33. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.
limited liability partnership (LLP)
outside director
joint tenancy
rescission
34. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.
seniority system
output contract
negotiation
presentment
35. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.
inter vivos trust
deficiency judgment
order instrument
insurance
36. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.
intermediary bank
premium
corporation
holding company
37. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).
estopped
frustration of purpose
sale or return
securities
38. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.
blue laws
general partner
cease-and-desist order
choice-of-law clause
39. A writ from a higher court asking the lower court for the record of a case.
condition
prospectus
tenancy at will
writ of certiorari
40. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.
stored-value card
merger
attachment
promisee
41. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.
signature
release
collateral
foreign exchange market
42. All forms of personal property.
chattel
intended beneficiary
drawee
limited liability partnership (LLP)
43. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).
smart card
alienation
constructive delivery
purchase-money security interest (PMSI)
44. 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.
unconscionable contract or clause
disparate-treatment discrimination
consideration
rule of four
45. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.
express warranty
integrated contract
ratification
consumer-debtor
46. 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.
unilateral mistake
minimum wage
exclusive distributorship
S corporation
47. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.
administrator
mislaid property
export
secured party
48. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.
business judgment rule
unilateral contract
discharge
stock
49. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.
implied warranty of fitness for a particular purpose
intestate
acceptance
felony
50. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.
pass-through entity
spendthrift trust
tender
answer