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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 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.






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






3. A contract that by law requires a specific form - such as being executed under seal - for its validity.






4. Property with which the owner has involuntarily parted and then cannot find or recover.






5. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






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






7. 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.






8. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






9. In a given state - a corporation that does business in - and is organized under the law of - that state.






10. A set of policies or procedures affecting the way a corporation is directed or controlled.






11. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






12. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






13. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






14. A gift of personal property by will (from the verb to bequeath).






15. A contract having no legal force or binding effect.






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






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






18. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






19. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






20. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






21. 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.






22. 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.






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






24. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






25. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






26. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






27. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






28. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.






29. A type of limited liability partnership owned by family members or fiduciaries of family members.






30. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






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






32. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






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






34. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






35. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






36. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






37. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






38. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






39. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






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






41. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






42. 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 -






43. Barred - impeded - or precluded.






44. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






45. Charging an illegal rate of interest.






46. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






47. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






48. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






49. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






50. A network that can be used by persons located (distributed) around the country or the globe to share computer files.