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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. 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
entrustment rule
apparent authority
profit
mediation
2. 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
collateral
intended beneficiary
crime
negotiation
3. A person who makes an offer.
order for relief
offeror
levy
distributed network
4. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h
international organization
self-incrimination
levy
per stirpes
5. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.
sublease
attachment
joint and several liability
trade secret
6. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'
bailment
taking
copyright
union shop
7. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.
check
mens rea
unconscionable contract or clause
certificate of limited partnership
8. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.
acceptance
cybersquatting
order instrument
co-surety
9. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.
exclusive jurisdiction
tender offer
stored-value card
federal question
10. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ
constructive eviction
corporate social responsibility
accord and satisfaction
minimum wage
11. An action to carry into effect the directions in a court decree or judgment.
execution
corporation
gift causa mortis
preemptive rights
12. Information or processes that give a business an advantage over competitors that do not know the information or processes.
parol evidence rule
trade secret
bond
homestead exemption
13. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.
order instrument
robbery
liquidated damages
testator
14. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.
vesting
discharge
insurable interest
intestate
15. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.
will
collateral promise
whistleblowing
sovereign immunity
16. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.
guarantor
ratification
check
valid contract
17. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.
force majeure clause
transfer warranties
mortgagee
winding up
18. A worldwide system in which foreign currencies are bought and sold.
respondeat superior
past consideration
national law
foreign exchange market
19. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only
mediation
executory contract
e-signature
tenancy at sufferance
20. 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.
misdemeanor
condition
insurable interest
holding company
21. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).
obligor
equal dignity rule
parent-subsidiary merger
e-money
22. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.
secured party
treaty
franchise
signature
23. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.
union shop
traveler's check
personal property
rescission
24. 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.
mirror image rule
co-surety
bailee
plea bargaining
25. 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.
personal defenses
implied warranty of fitness for a particular purpose
presentment warranties
order instrument
26. 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.
condition
cybernotary
trade name
insurable interest
27. 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.
writ of attachment
testator
mediation
short-form merger
28. 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.
service mark
shrink-wrap agreement
unilateral contract
executor
29. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'
insurance
incidental damages
bearer instrument
mitigation of damages
30. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil
implied warranty of fitness for a particular purpose
attachment
nonpossessory interest
collateral promise
31. 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.
tenancy at sufferance
preferred creditor
pleadings
fictitious payee
32. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
investment contract
unilateral mistake
moral minimum
answer
33. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.
trademark
e-evidence
red herring prospectus
bailee
34. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.
preferred stock
award
insider trading
backdating
35. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio
fictitious payee
parent-subsidiary merger
resulting trust
quitclaim deed
36. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.
limited partner
sole proprietorship
payee
short-form merger
37. Generally - the value given in return for a promise; involves two elements
brief
bailment
consideration
mutual fund
38. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.
special warranty deed
after-acquired property
course of dealing
forum-selection clause
39. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.
equal dignity rule
nominal damages
informal contract
hot-cargo agreement
40. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.
letter of credit
computer crime
clearinghouse
ratification
41. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.
execution
quasi contract
unilateral contract
comity
42. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.
discovery
white-collar crime
constructive discharge
limited liability partnership (LLP)
43. A prediction concerning potential loss based on known and unknown factors.
risk
bearer instrument
secured party
mailbox rule
44. In insurance law - the price paid by the insured for insurance protection for a specified period of time.
premium
brief
sublease
cram-down provision
45. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).
answer
implied-in-fact contract
confusion
inter vivos trust
46. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.
apparent authority
standing to sue
interrogatories
intended beneficiary
47. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
mutual fund
preferred creditor
covenant not to compete
cyber crime
48. 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.
traveler's check
risk
presentment
holder in due course (HDC)
49. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
information return
predominant-factor test
merchant
lessee
50. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.
confusion
ratification
wrongful discharge
misdemeanor