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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 contract that has not as yet been fully performed.






2. 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






3. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






4. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






5. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






6. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






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






8. An equitable remedy requiring exactly the performance that was specified; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique.






9. A check drawn by a bank on itself.

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10. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






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






12. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






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






14. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






15. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






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






17. A provision in a contract stipulating that certain unforeseen events






18. A party that holds a lien that is subordinate to one or more other liens on the same property.






19. 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.






20. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






21. Any bank handling an item for collection - except the payor bank.






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






23. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






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. One who owes an obligation to another.






26. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






27. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






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






29. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






30. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






31. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






32. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.






33. 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






34. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






35. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.






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






37. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.






38. 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.






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






40. 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.






41. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






42. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.






43. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






44. Joint ownership.






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






46. A person who receives inside information.






47. 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.






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






49. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






50. The authority of a court to hear and decide a specific case.