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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 goods and services that domestic firms sell to buyers located in other countries.
probable cause
entrapment
export
implied warranty of habitability
2. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi
alien corporation
employment contract
self-incrimination
utilitarianism
3. 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
discharge
question of law
estopped
Totten trust
4. Procedurally - a plaintiff's response to a defendant's answer.
reply
license
Totten trust
universal defenses
5. 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.
force majeure clause
consideration
levy
investment contract
6. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.
negotiation
privity of contract
partially disclosed principal
specific performance
7. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.
delegator
tariff
devise
embezzlement
8. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.
express warranty
limited liability limited partnership (LLLP)
short-form merger
frustration of purpose
9. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.
testate
alienation
scienter
lessee
10. 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.
liquidation
winding up
trademark
articles of organization
11. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.
free-writing prospectus
confusion
preferred creditor
output contract
12. The image and overall appearance of a product
corporate social responsibility
mutual fund
distribution agreement
trade dress
13. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.
lessee
novation
surety
retained earnings
14. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -
mitigation of damages
concurrent ownership
adverse possession
petition in bankruptcy
15. 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
information return
constructive discharge
acceleration clause
private equity capital
16. 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.
deposition
debtor
international organization
deed
17. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.
dominion
periodic tenancy
equal dignity rule
intangible property
18. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
mailbox rule
accredited investors
specific performance
contractual capacity
19. A state statute under which certain types of contracts must be in writing to be enforceable.
outside director
lien
incidental damages
Statute of Frauds
20. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
perfection
hot-cargo agreement
private equity capital
recording statutes
21. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.
formal contract
testator
implied warranty
fiduciary
22. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
preferred creditor
obligor
tender
covenant not to sue
23. Land and everything attached to it - such as trees and buildings.
specific performance
sexual harassment
lost property
real property
24. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.
distributed network
agreement
anticipatory repudiation
hacker
25. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif
inter vivos trust
choice-of-language clause
perfection
mens rea
26. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods
implied warranty of merchantability
leasehold estate
maker
fee simple
27. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.
probate court
information
beyond a reasonable doubt
performance
28. 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.
exclusionary rule
commingle
preemptive rights
backdating
29. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.
corporation
estopped
electronic fund transfer (EFT)
binder
30. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.
small claims court
alternative dispute resolution (ADR)
consequential damages
domestic corporation
31. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.
transfer warranties
forum-selection clause
treaty
scienter
32. 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.
surety
domain name
dividend
pass-through entity
33. A set of governing rules adopted by a corporation or other association.
bylaws
writ of execution
white-collar crime
debtor in possession (DIP)
34. 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.
cost-benefit analysis
testate
security
treaty
35. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o
product liability
spendthrift trust
delegator
joint and several liability
36. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.
articles of partnership
condition
negotiation
fee simple
37. 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.
universal defenses
accession
insurable interest
disclosed principal
38. A contract in which one party forfeits the right to pursue a legal claim against the other party.
release
grand jury
utilitarianism
personal defenses
39. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.
homestead exemption
question of law
intestacy laws
foreign corporation
40. 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.
disparate-treatment discrimination
treaty
shareholder's derivative suit
legatee
41. A trademark in cyberspace.
cyber mark
estopped
premium
employment at will
42. A will written entirely in the signer's handwriting and usually not witnessed.
holographic will
bond
liquidated damages
bankruptcy court
43. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
gift inter vivos
requirements contract
money laundering
diversity of citizenship
44. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.
penalty
complaint
trade dress
right of reimbursement
45. One designated in a will to receive a gift of personal property.
market-share liability
legatee
testator
profit
46. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
negotiation
moral minimum
pleadings
emancipation
47. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.
obligor
debtor in possession (DIP)
acceptance
sales contract
48. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.
writ of certiorari
obligor
integrated contract
dishonor
49. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.
leasehold estate
franchisee
implied warranty of fitness for a particular purpose
holding company
50. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro
constructive trust
drawer
online dispute resolution (ODR)
whistleblowing