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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. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






2. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






3. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






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






5. Law that pertains to a particular nation (as opposed to international law).






6. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






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






8. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






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






10. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






11. An action to carry into effect the directions in a court decree or judgment.






12. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






13. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






14. A contract having no legal force or binding effect.






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






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






17. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






18. 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.






19. Goods that conform to contract specifications.






20. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






21. 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.






22. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






23. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






24. The bank on which a check is drawn (the drawee bank).






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






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






27. 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






28. The authority of a court to hear and decide a specific case.






29. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






30. 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.






31. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






32. Any bank handling an item for collection - except the payor bank.






33. The process of resolving a dispute through the court system.






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 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.






36. One who owes an obligation to another.






37. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






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






39. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






40. 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.






41. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






42. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






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






44. 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






45. 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.






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






47. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






48. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






49. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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