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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 termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






2. In a given state - a corporation that does business in the state without being incorporated therein.






3. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






4. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






5. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






6. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






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






8. A person in possession of an instrument payable to bearer or indorsed in blank.






9. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.






10. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






11. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






12. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






13. 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.






14. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






15. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






16. 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.






17. 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.






18. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






19. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






20. The relationship that exists between the promisor and the promisee of a contract.






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






22. 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






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






24. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






25. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






26. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






27. Having left a will at death.






28. A written - temporary insurance policy.






29. A person to whom an instrument is made payable.






30. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






31. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






32. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






33. 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.






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






35. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






36. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






37. A prediction concerning potential loss based on known and unknown factors.






38. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






39. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






40. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






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






42. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






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






44. 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.






45. 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






46. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






47. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






48. One who makes and executes a will.






49. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






50. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.