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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. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






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






3. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






4. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






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






6. 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.






7. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






8. 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.






9. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






10. In the context of real property - an interest in land that does not include any right to possess the property.






11. 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






12. A crime






13. An employer's termination of an employee's employment in violation of the law.






14. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






15. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






16. A contract that does not require a specified form or formality to be valid.






17. 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.






18. The first bank to receive a check for payment.






19. A public official authorized to attest to the authenticity of signatures.






20. Charging an illegal rate of interest.






21. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






22. Ownership rights in property - including the right to possess and control the property.






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






24. 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.






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






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






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






28. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






29. An order by a bank customer to his or her bank not to pay or certify a certain check.






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






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






32. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






33. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






34. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






35. Any interest in personal property or fixtures that secures payment or performance of an obligation.






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






38. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






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






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






41. Goods that conform to contract specifications.






42. 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.






43. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.






44. Information or processes that give a business an advantage over competitors that do not know the information or processes.






45. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






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






47. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






48. 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.






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






50. 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.