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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. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






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






3. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






4. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






5. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






6. 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.






7. A contract that has been completely performed by both parties.






8. Within a specified time period or - if no period is specified - within a reasonable time.






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






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






11. 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






12. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






13. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






14. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






15. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






16. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






17. One who entrusts goods to a bailee.






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






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






20. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






21. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






22. 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.






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






24. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






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






26. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






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






28. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.






29. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






30. All forms of personal property.






31. A trademark in cyberspace.






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






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






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






35. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






36. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






37. A gift of personal property by will (from the verb to bequeath).






38. 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.






39. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






40. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






41. A check - other than a certified check - that is presented for payment more than six months after its date.






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






43. An agreement by two or more persons to carry on - as co-owners - a business for profit.






44. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






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






46. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






47. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






48. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






49. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201






50. 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.