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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 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






2. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






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.






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.






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.






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






7. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






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.






9. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






10. Barred - impeded - or precluded.






11. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






12. A revocable right or privilege of a person to come onto another person's land.






13. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






14. A person to whom a promise is made.






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.






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.






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






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.






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.






20. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






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.






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.






23. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






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






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.






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






27. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






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.






29. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






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.






31. A contract that by law requires a specific form - such as being executed under seal - for its validity.






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.'






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.






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.






35. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






36. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






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).






38. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






39. A writ from a higher court asking the lower court for the record of a case.






40. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






41. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






42. All forms of personal property.






43. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






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.






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.






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.






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.






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.






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.






50. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.