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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. 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.






2. A type of limited liability partnership owned by family members or fiduciaries of family members.






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






4. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w






5. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued






6. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f






7. Property that is movable; any property that is not real property.






8. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






9. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






10. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






11. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






12. 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






13. A contract between the issuer of a bond and the bondholder.






14. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






15. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






16. A set of policies or procedures affecting the way a corporation is directed or controlled.






17. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






18. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






19. 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.






20. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






21. 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






22. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






23. 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.






24. State laws that regulate the offering and sale of securities.






25. 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.






26. Generally - the value given in return for a promise; involves two elements






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






28. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d






29. 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






30. 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






31. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






32. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






33. 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.






34. The basic document filed with a designated state official by which a limited partnership is formed.






35. An assertion that something either will or will not happen in the future.






36. Property with which the owner has involuntarily parted and then cannot find or recover.






37. A set of governing rules adopted by a corporation or other association.






38. 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.






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






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






41. 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






42. 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.






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






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






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






46. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






47. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






48. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






49. A provision in a contract stipulating that certain unforeseen events






50. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.