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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 power of a government to take land from private citizens for public use on the payment of just compensation.
frustration of purpose
negotiable instrument
eminent domain
backdating
2. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.
vicarious liability
payor bank
target corporation
business ethics
3. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.
cybernotary
act of state doctrine
target corporation
resulting trust
4. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.
adhesion contract
legatee
motion for summary judgment
counterclaim
5. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.
corporate governance
sales contract
tender
writ of execution
6. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment
trust
crime
mirror image rule
vicarious liability
7. Procedurally - a plaintiff's response to a defendant's answer.
garnishment
reply
franchise
incidental damages
8. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.
taking
confusion
summons
winding up
9. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
crime
promise
imposter
search warrant
10. 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
dissolution
purchase-money security interest (PMSI)
dissociation
cyberterrorist
11. A contract that is formed electronically.
civil law system
motion for a new trial
cybersquatting
e-contract
12. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
answer
automatic stay
acceleration clause
stock options
13. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.
risk
clearinghouse
counterclaim
pass-through entity
14. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.
e-money
replevin
proxy
attachment
15. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.
delegator
smart card
delegatee
independent contractor
16. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
arbitration clause
bond
document of title
covenant not to compete
17. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
lease
backdating
lessor
depositary bank
18. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.
community property
disparate-treatment discrimination
order for relief
piercing the corporate veil
19. The relationship that exists between the promisor and the promisee of a contract.
covenant not to compete
articles of organization
privity of contract
bilateral contract
20. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.
generally accepted accounting principles (GAAP)
eminent domain
white-collar crime
debtor
21. The first bank to receive a check for payment.
depositary bank
incidental beneficiary
quasi contract
affirmative action
22. The process of resolving a dispute through the court system.
firm offer
guarantor
litigation
scienter
23. One to whom goods are entrusted by a bailor.
search warrant
bailee
malpractice
investment company
24. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).
incidental damages
insurable interest
assignor
prenuptial agreement
25. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t
suretyship
course of dealing
commercial impracticability
bailment
26. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.
levy
franchisor
consolidation
spendthrift trust
27. A writ from a higher court asking the lower court for the record of a case.
employment at will
writ of certiorari
intermediary bank
franchisor
28. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be
question of law
necessaries
constructive trust
SEC Rule 10b-5
29. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
forum-selection clause
revocation
performance
vesting
30. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.
beyond a reasonable doubt
certification mark
tenancy at will
holder in due course (HDC)
31. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.
predominant-factor test
equal dignity rule
rule of four
tenancy at will
32. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.
payor bank
fungible goods
tombstone ad
seniority system
33. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.
easement
payor bank
close corporation
self-defense
34. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi
consideration
utilitarianism
spendthrift trust
real property
35. 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
piercing the corporate veil
docket
member
objective theory of contracts
36. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.
Federal Reserve System
tangible employment action
obligee
replevin
37. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.
administrator
mediation
intangible property
drawer
38. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.
mortgagor
debtor
disparate-treatment discrimination
policy
39. 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).
deficiency judgment
license
document of title
smart card
40. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib
limited partner
workers' compensation laws
bond indenture
necessaries
41. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm
perfection
secondary boycott
tenancy by the entirety
trust
42. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.
defalcation
civil law system
motion for a directed verdict
restitution
43. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl
forbearance
summary jury trial (SJT)
limited partnership
independent contractor
44. 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.
union shop
employment at will
liquidation
exclusive jurisdiction
45. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.
confiscation
entrapment
tender offer
long arm statute
46. 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.
liquidated damages
express warranty
good faith purchaser
depositary bank
47. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
promisor
identity theft
watered stock
implied warranty
48. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ
motion to dismiss
exculpatory clause
consent
discharge
49. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.
utilitarianism
tariff
periodic tenancy
exculpatory clause
50. The act of stealing another's identifying information
identity theft
pass-through entity
retained earnings
ethics