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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 purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.
white-collar crime
order for relief
quitclaim deed
good faith purchaser
2. 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.
limited liability company (LLC)
copyright
franchise
restitution
3. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif
mens rea
motion for a directed verdict
civil law system
cease-and-desist order
4. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
promissory estoppel
gift
shrink-wrap agreement
merchant
5. 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
I-551 Alien Registration Receipt
prima facie case
prenuptial agreement
free-writing prospectus
6. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.
lessee
stop-payment order
execution
parol evidence rule
7. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.
maker
mutual fund
pledge
ultra vires
8. One who entrusts goods to a bailee.
drawer
bailor
counterclaim
larceny
9. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.
sexual harassment
limited partner
order for relief
business necessity
10. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -
devisee
right of reimbursement
concurrent jurisdiction
exclusionary rule
11. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).
justiciable controversy
joint tenancy
whistleblowing
personal defenses
12. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment
affirmative action
operating agreement
informal contract
crime
13. 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
apparent authority
expropriation
attachment
usury
14. Property with which the owner has involuntarily parted and then cannot find or recover.
privity of contract
liquidated damages
promise
lost property
15. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
corporation
I-9 verification
gift inter vivos
peer-to-peer (P2P) networking
16. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.
liquidated debt
lease
bylaws
agency
17. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.
secured transaction
surety
junior lienholder
cease-and-desist order
18. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.
extension clause
minimum wage
condition
guarantor
19. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.
pleadings
motion to dismiss
disparate-impact discrimination
draft
20. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.
easement
franchisee
mirror image rule
robbery
21. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.
condition subsequent
motion for a new trial
incidental beneficiary
preemptive rights
22. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.
mislaid property
gift causa mortis
fiduciary
venture capital
23. 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.
cover
covenant not to compete
intestacy laws
holographic will
24. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.
forum-selection clause
civil law system
question of law
motion for a directed verdict
25. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or
constructive eviction
exclusionary rule
peer-to-peer (P2P) networking
wrongful discharge
26. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of
27. 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
covenant not to sue
e-money
cybernotary
28. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.
cybersquatting
international law
usage of trade
right of reimbursement
29. Property with which the owner has voluntarily parted and then cannot find or recover.
identity theft
employment at will
mislaid property
condemnation
30. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.
e-signature
constructive delivery
cybersquatting
adhesion contract
31. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.
lien
co-surety
codicil
bona fide occupational qualification (BFOQ)
32. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of
delegation of duties
outside director
requirements contract
imposter
33. A contract having no legal force or binding effect.
void contract
mirror image rule
trademark
shipment contract
34. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.
tender
mortgagee
felony
proceeds
35. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise
void contract
vesting
indorsement
money laundering
36. The creation of an absolute or unconditional right or power.
Regulation E
vesting
exclusive distributorship
treaty
37. 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
consequential damages
covenant not to compete
plea bargaining
justiciable controversy
38. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
writ of execution
preferred creditor
tender offer
stored-value card
39. 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.
lease
cross-collateralization
robbery
incidental beneficiary
40. One to whom goods are entrusted by a bailor.
bylaws
fee simple
levy
bailee
41. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'
articles of incorporation
retained earnings
bearer instrument
expropriation
42. A person appointed by a testator in a will to see that her or his will is administered appropriately.
executor
fee simple
privity of contract
merchant
43. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.
transfer warranties
exclusionary rule
malpractice
defalcation
44. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
investment company
seniority system
leasehold estate
reformation
45. 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
limited partner
insurance
dissolution
alien corporation
46. Goods that conform to contract specifications.
bona fide occupational qualification (BFOQ)
penalty
conforming goods
constructive delivery
47. 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.'
collateral promise
stock warrant
insider trading
e-signature
48. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.
summons
security agreement
computer crime
tender of delivery
49. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.
express warranty
seniority system
course of dealing
investment company
50. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.
proxy
affirmative action
appraisal right
unconscionable contract or clause