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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 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.






2. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






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






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






5. 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.






6. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be






7. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






8. 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.






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






10. 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






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






12. Land and everything attached to it - such as trees and buildings.






13. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






14. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






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






16. 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.






17. 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.






18. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






19. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






20. 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.






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






22. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






23. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.






24. Property resulting from intellectual - creative processes.






25. Standards concerning an auditor's professional qualities and the judgment exercised by him or her in the performance of an audit and report. The source of the standards is the American Institute of Certified Public Accountants.






26. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






27. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






28. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






29. 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.






30. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






31. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






32. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






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






34. One who makes and executes a will.






35. 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.






36. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






37. 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.






38. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






39. 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






40. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






41. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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42. One to whom an obligation is owed.






43. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






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






45. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






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






47. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






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






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






50. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.