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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 failure - without legal excuse - of a promisor to perform the obligations of a contract.






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






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






4. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






5. 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.






6. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






7. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






8. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






9. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






10. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






11. 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.






12. The creation of an absolute or unconditional right or power.






13. Goods that conform to contract specifications.






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






15. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






16. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






17. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






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






19. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






20. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






21. The act of transferring to another all or part of one's rights arising under a contract.






22. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






23. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






24. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio






25. A prediction concerning potential loss based on known and unknown factors.






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






27. A person on the board of directors who does not hold a management position at the corporation.






28. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






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






30. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






31. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






32. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






33. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






34. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






35. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






36. An implied promise by a landlord that rented residential premises are fit for human habitation






37. 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.






38. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






39. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






40. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






41. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






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






43. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






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






45. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.






46. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein






47. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






48. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






49. 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






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