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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. The goods and services that domestic firms sell to buyers located in other countries.






2. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






3. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






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






5. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






6. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






7. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






8. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






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






10. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.






11. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






12. The image and overall appearance of a product






13. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






14. 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 -






15. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






16. 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.






17. 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.






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






19. A state statute under which certain types of contracts must be in writing to be enforceable.






20. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






21. 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.






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






23. Land and everything attached to it - such as trees and buildings.






24. 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.






25. 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






26. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






27. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






28. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






29. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






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






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






32. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






33. A set of governing rules adopted by a corporation or other association.






34. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






35. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






36. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.






37. 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.






38. A contract in which one party forfeits the right to pursue a legal claim against the other party.






39. 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.






40. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.






41. A trademark in cyberspace.






42. A will written entirely in the signer's handwriting and usually not witnessed.






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






44. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






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






46. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






47. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






48. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






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






50. 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