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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. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






2. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






3. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






4. One designated in a will to receive a gift of personal property.






5. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.






6. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






7. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






8. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201






9. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






10. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






11. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






12. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






13. The process of proving and validating a will and settling all matters pertaining to an estate.






14. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






15. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






16. The document filed with a designated state official by which a limited liability company is formed.






17. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






18. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






19. A person on the board of directors who is also an officer of the corporation.






20. 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






21. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






22. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






23. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






24. 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.






25. A contract having no legal force or binding effect.






26. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






27. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






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






29. 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.






30. The act of transferring to another all or part of one's rights arising under a contract.






31. 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.






32. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






33. The relationship that exists between the promisor and the promisee of a contract.






34. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






35. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






36. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






37. A corporation whose shareholders are limited to a small group of persons - often including only family members.






38. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






39. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






40. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






41. A contract that is formed electronically.






42. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






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






44. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






45. 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






46. 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






47. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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48. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






49. 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.






50. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are