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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. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






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






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






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






5. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






6. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






7. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






8. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.






9. 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.






10. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






11. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






12. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






13. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






14. A contract that has not as yet been fully performed.






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






16. A landlord's act of depriving a tenant of possession of the leased premises.






17. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






18. 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.






19. In a sale of goods - the express designation of the goods provided for in the contract.






20. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






21. An agreement by two or more persons to carry on - as co-owners - a business for profit.






22. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.






23. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






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






25. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






26. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






27. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






28. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






29. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






30. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






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






32. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.






33. 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.






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






35. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






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






37. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






38. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






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






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






41. A crime






42. 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.






43. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.






44. 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.






45. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






46. 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.






47. 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






48. 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.






49. 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.






50. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part