Test your basic knowledge |

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. 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






2. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






3. The relationship that exists between the promisor and the promisee of a contract.






4. 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.






5. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






6. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






7. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.






8. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






9. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.






10. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






11. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






12. State laws that regulate the offering and sale of securities.






13. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.






14. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






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






16. The geographic district in which a legal action is tried and from which the jury is selected.






17. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






18. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






19. 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






20. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






21. 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.






22. The purchase or sale of securities on the basis of information that has not been made available to the public.






23. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






24. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






25. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






26. The act of transferring to another all or part of one's rights arising under a contract.






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






28. 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






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






30. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






31. 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.






32. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






33. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.






34. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






35. 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.






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






37. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






38. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






39. The bank on which a check is drawn (the drawee bank).






40. A revocable right or privilege of a person to come onto another person's land.






41. 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).






42. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






43. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






44. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






45. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






46. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






47. A contract that is formed electronically.






48. 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.






49. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






50. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests