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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. 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
tenancy at sufferance
operating agreement
plea bargaining
condemnation
2. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
disaffirmance
duress
mitigation of damages
bankruptcy court
3. 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.
unconscionable contract or clause
e-contract
collateral
payor bank
4. Information or processes that give a business an advantage over competitors that do not know the information or processes.
red herring prospectus
comity
revocation
trade secret
5. A company whose business activity is holding shares in another company.
holding company
ratification
watered stock
insurable interest
6. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.
red herring prospectus
fee simple
complaint
check
7. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).
license
power of attorney
will
cyber mark
8. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.
business necessity
normal trade relations (NTR) status
artisan's lien
necessaries
9. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.
drawee
risk
firm offer
free-writing prospectus
10. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.
11. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.
concurrent jurisdiction
corporate social responsibility
secured party
warranty deed
12. 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.
generally accepted auditing standards (GAAS)
express warranty
winding up
undisclosed principal
13. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.
reaffirmation agreement
limited liability company (LLC)
articles of partnership
S corporation
14. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract
incidental damages
promisor
inside director
award
15. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.
larceny
litigation
good faith purchaser
abandoned property
16. The act of transferring to another all or part of one's rights arising under a contract.
petition in bankruptcy
automatic stay
categorical imperative
assignment
17. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.
lessor
I-9 verification
legatee
frustration of purpose
18. 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.
franchisee
lessee
consolidation
negotiation
19. 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.'
tangible property
quorum
preemptive rights
beyond a reasonable doubt
20. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted
fiduciary
partially disclosed principal
sales contract
objective theory of contracts
21. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).
shrink-wrap agreement
delegation of duties
unreasonably dangerous product
document of title
22. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.
default
acceleration clause
money laundering
gift inter vivos
23. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and
reply
trade dress
attachment
motion to dismiss
24. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.
insurance
suretyship
discovery
fiduciary
25. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).
acceptance
delegator
writ of attachment
corporation
26. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.
self-defense
sovereign immunity
ratification
commercial impracticability
27. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
offeree
constructive trust
union shop
extension clause
28. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.
shipment contract
dominion
bailor
intestacy laws
29. 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.
license
short-form merger
international law
limited liability company (LLC)
30. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.
life estate
preemptive rights
principle of rights
watered stock
31. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
search warrant
disparate-treatment discrimination
close corporation
exclusive jurisdiction
32. Procedurally - a plaintiff's response to a defendant's answer.
reply
trademark
right-to-work law
bylaws
33. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.
brief
covenant not to sue
nuncupative will
reply
34. 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
negotiation
appraisal right
risk management
writ of attachment
35. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.
holographic will
predominant-factor test
forum-selection clause
community property
36. One for whose benefit a promise is made in a contract but who is not a party to the contract.
mechanic's lien
certification mark
motion for a new trial
third party beneficiary
37. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.
per stirpes
preference
franchise
devise
38. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part
grand jury
joint tenancy
penalty
domain name
39. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.
tenancy at sufferance
continuation statement
plea bargaining
employment discrimination
40. An employer's termination of an employee's employment in violation of the law.
bilateral mistake
wrongful discharge
watered stock
certificate of deposit (CD)
41. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i
firm offer
investment company
scienter
impossibility of performance
42. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.
cost-benefit analysis
consent
power of attorney
charitable trust
43. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
limited liability company (LLC)
record
suretyship
information
44. A contract between the issuer of a bond and the bondholder.
intestacy laws
default
bond indenture
executor
45. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.
digital cash
right of reimbursement
extension clause
tenancy by the entirety
46. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.
constructive eviction
corporate social responsibility
homestead exemption
sale on approval
47. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
deficiency judgment
burglary
mens rea
predominant-factor test
48. The passing of title to property from the seller to the buyer for a price.
sale
cover
tenancy by the entirety
alienation
49. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.
promissory estoppel
arbitration clause
liquidation
writ of attachment
50. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo
tangible employment action
pledge
operating agreement
trade name