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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. Charging an illegal rate of interest.






2. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






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






4. 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.






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






6. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.






7. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






8. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






9. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






10. 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






11. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






12. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






13. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






14. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






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






16. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






17. 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.






18. A trademark in cyberspace.






19. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






20. 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.






21. The image and overall appearance of a product






22. A state statute under which certain types of contracts must be in writing to be enforceable.






23. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






24. 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.






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






26. Generally - the value given in return for a promise; involves two elements






27. 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






28. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






29. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






30. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






31. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






32. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






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






34. Property that is movable; any property that is not 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






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






37. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






38. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






39. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






40. 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.






41. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






42. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






43. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






44. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.






45. 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






46. 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.






47. A contract that does not require a specified form or formality to be valid.






48. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






49. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






50. A contract that results when an offer can be accepted only by the offeree's performance.