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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 document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






2. 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.






3. A corporation whose shareholders are limited to a small group of persons - often including only family members.






4. An equity (ownership) interest in a corporation - measured in units of shares.






5. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






6. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






7. Procedurally - a defendant's response to the plaintiff's complaint.






8. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






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






10. 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.






11. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.






12. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






13. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






14. A check - other than a certified check - that is presented for payment more than six months after its date.






15. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






16. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






17. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






18. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






19. An assertion that something either will or will not happen in the future.






20. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






21. 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.






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






23. A person to whom a promise is made.






24. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






25. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv






26. A party to whom contractual obligations are transferred - or delegated.






27. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






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






29. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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30. A person on the board of directors who is also an officer of the corporation.






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






32. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






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






34. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






35. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






36. The document filed with a designated state official by which a limited liability company is formed.






37. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






38. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






39. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






40. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






41. A writ from a higher court asking the lower court for the record of a case.






42. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






43. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






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






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






46. 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.






47. An employer's termination of an employee's employment in violation of the law.






48. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






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






50. A person who makes a promise.