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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. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






2. A written - temporary insurance policy.






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






4. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






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






6. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






7. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






8. A person who receives inside information.






9. 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.






10. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.






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






12. A legally recognized authority that can certify the validity of digital signatures.






13. One who entrusts goods to a bailee.






14. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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15. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






16. 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).






17. 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.






18. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.






19. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






20. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






21. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






22. 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.






23. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






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






25. 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.






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






27. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






28. 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.






29. The number of members of a decision-making body that must be present before business may be transacted.






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






31. One who owes an obligation to another.






32. 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.






33. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






34. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






35. The document filed with a designated state official by which a limited liability company is formed.






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






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






38. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






39. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






40. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






41. Property with which the owner has voluntarily parted - with no intention of recovering it.






42. 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






43. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






44. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






45. 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






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






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






48. Procedurally - a defendant's response to the plaintiff's complaint.






49. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






50. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.