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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. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






2. An agreement that creates or provides for a security interest between the debtor and a secured party.






3. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






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






5. Land and everything attached to it - such as trees and buildings.






6. A person in possession of an instrument payable to bearer or indorsed in blank.






7. A company whose business activity is holding shares in another company.






8. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






9. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






10. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






11. A designation in the United States for a corporation formed in another country but doing business in the United States.






12. A person who receives inside information.






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






14. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






15. 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.






16. 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.






17. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






18. 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.






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






20. 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.






21. An action to carry into effect the directions in a court decree or judgment.






22. 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






23. 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.

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24. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






25. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.






26. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






27. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.






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






29. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






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






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






32. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






33. 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






34. 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.






35. A person on the board of directors who does not hold a management position at the corporation.






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






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






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

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39. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






40. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






41. 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.






42. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






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






44. 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.






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






46. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






47. Any interest in personal property or fixtures that secures payment or performance of an obligation.






48. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






49. 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






50. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.