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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. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






2. 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.






3. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






4. 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.






5. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






6. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






7. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






8. 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.






9. One designated in a will to receive a gift of personal property.






10. The power of a government to take land from private citizens for public use on the payment of just compensation.






11. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






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






13. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






14. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






15. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






16. 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






17. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






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






19. 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






20. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






21. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.






22. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






23. 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






24. 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.






25. A type of contract that arises when a promise is given in exchange for a return promise.






26. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






27. 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.






28. Goods that conform to contract specifications.






29. 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.






30. A party to whom the rights under a contract are transferred - or assigned.






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






32. Procedurally - a plaintiff's response to a defendant's answer.






33. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






34. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






35. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






36. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






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






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






39. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






40. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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41. A designation in the United States for a corporation formed in another country but doing business in the United States.






42. A crime committed on the Internet.






43. 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.'






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






45. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






46. 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.






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






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






49. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.






50. 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.