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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. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






2. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






3. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






4. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






5. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






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






7. 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.






8. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






9. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






10. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






11. The geographic district in which a legal action is tried and from which the jury is selected.






12. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






13. The first bank to receive a check for payment.






14. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






15. 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.






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






17. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






18. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






19. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






20. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






21. A valid contract rendered unenforceable by some statute or law.






22. A contract between the issuer of a bond and the bondholder.






23. 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






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.






25. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






26. 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.






27. 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.

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28. 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.






29. 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






30. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






31. Property with which the owner has voluntarily parted and then cannot find or recover.






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






33. 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






34. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






35. Ownership rights in property - including the right to possess and control the property.






36. 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.






37. State laws that regulate the offering and sale of securities.






38. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






39. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






40. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






41. A document by which title to property (usually real property) is passed.






42. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






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






44. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






45. 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.






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

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47. A prediction concerning potential loss based on known and unknown factors.






48. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






49. 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






50. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.