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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. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






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






3. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






4. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






5. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






6. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.






7. 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).






8. A provision in a contract stipulating that certain unforeseen events






9. 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






10. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






11. A state law providing that employees may not be required to join a union as a condition of retaining employment.






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






13. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






14. 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.'






15. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






16. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






17. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.






18. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






19. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






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






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






22. The use of an asset that is not the subject of a loan to collateralize that loan.






23. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






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






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






26. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






27. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






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






29. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






30. An order by a bank customer to his or her bank not to pay or certify a certain check.






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






32. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






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






34. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






35. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






36. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






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






38. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






39. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






40. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






41. 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.






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






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






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 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.






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






47. 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






48. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






49. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






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