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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 security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






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






3. Having left a will at death.






4. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






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






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






7. Property that is movable; any property that is not real property.






8. A crime committed on the Internet.






9. 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






10. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






11. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






12. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






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






14. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






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






16. A worldwide system in which foreign currencies are bought and sold.






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






18. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






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






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






21. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






22. 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 -






23. One for whose benefit a promise is made in a contract but who is not a party to the contract.






24. 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.






25. 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






26. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






27. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






28. 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.






29. A contract that is formed electronically.






30. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






31. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






32. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






33. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






34. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






35. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






36. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






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






38. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






39. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






40. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






41. 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.






42. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






43. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






44. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






45. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






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






47. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






48. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






49. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






50. 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.