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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. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






2. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






3. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






4. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.


5. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






6. 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






7. 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






8. A promise or commitment to perform or refrain from performing some specified act in the future.






9. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






10. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






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






12. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






13. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






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






15. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






16. A party to whom the rights under a contract are transferred - or assigned.






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






18. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






19. 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.






20. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






21. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






22. 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






23. Joint ownership.






24. 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






25. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.






26. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






27. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






28. 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.






29. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






30. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






31. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






32. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






33. 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.






34. 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.






35. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






36. Any voluntary transfer of property made without consideration - past or present.






37. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






38. 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.






39. The act of stealing another's identifying information






40. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






41. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






42. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






43. In the context of real property - an interest in land that does not include any right to possess the property.






44. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.






45. An implied promise by a landlord that rented residential premises are fit for human habitation






46. 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.






47. 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.






48. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






49. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






50. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.