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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 reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






2. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






3. A contract that has been completely performed by both parties.






4. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






5. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






6. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






7. 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






8. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






9. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






10. The act of refraining from an action that one has a legal right to undertake.






11. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






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






13. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






14. The act of accepting and giving legal force to an obligation that previously was not enforceable.






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






16. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.






17. 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.






18. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






19. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






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






21. A person to whom an instrument is made payable.






22. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






23. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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24. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






25. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






26. 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






27. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






28. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






29. 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.






30. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






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






32. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






33. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






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

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35. The passing of title to property from the seller to the buyer for a price.






36. The basic document filed with a designated state official by which a limited partnership is formed.






37. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






38. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






39. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






40. 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






41. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






42. 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.






43. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






44. A contract in which one party forfeits the right to pursue a legal claim against the other party.






45. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






46. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.






47. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






48. Property that is movable; any property that is not real property.






49. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.






50. 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