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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 formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






2. 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






3. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.






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






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 third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






7. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






8. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






9. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






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






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






12. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






13. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






14. Under the Uniform Commercial Code Section 2-403(2) - a rule stating that if goods are entrusted to a merchant who deals in goods of that kind - the merchant has the power to transfer those goods and all rights to them to a buyer in the ordinary cours






15. 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.






16. A document by which title to property (usually real property) is passed.






17. 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






18. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






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






20. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






21. A charge by a grand jury that a named person has committed a crime.






22. 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






23. A contract that is formed electronically.






24. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






25. 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.






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






28. One to whom goods are entrusted by a bailor.






29. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.






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






31. All forms of personal property.






32. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






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






34. Joint ownership.






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






36. 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






37. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






38. 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.






39. The passing of title to property from the seller to the buyer for a price.






40. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.






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






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






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






44. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






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






46. 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.






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






48. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






49. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






50. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.