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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. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.
ultra vires
copyright
lease agreement
apparent authority
2. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.
express warranty
crime
intestate
sole proprietorship
3. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.
union shop
lessor
copyright
arbitration
4. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim
I-9 verification
covenant not to compete
Federal Reserve System
easement
5. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.
U.S. trustee
abandoned property
debtor
articles of incorporation
6. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'
e-signature
conveyance
affirmative action
motion for judgment n.o.v.
7. A charge by a grand jury that a named person has committed a crime.
peer-to-peer (P2P) networking
formal contract
indictment
e-contract
8. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit
normal trade relations (NTR) status
investment contract
lessor
identity theft
9. 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.
petition in bankruptcy
overdraft
national law
parent-subsidiary merger
10. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
defalcation
duress
preemptive rights
quorum
11. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part
scienter
distributed network
corporate governance
domain name
12. 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.
indorsement
cram-down provision
target corporation
mortgagor
13. Property with which the owner has involuntarily parted and then cannot find or recover.
lost property
right of subrogation
record
payee
14. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.
vicarious liability
justiciable controversy
payor bank
shelter principle
15. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.
consolidation
bond
shelter principle
forum-selection clause
16. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.
constructive trust
easement
mechanic's lien
independent contractor
17. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
justiciable controversy
burglary
entrustment rule
tender
18. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.
tangible employment action
implied warranty of fitness for a particular purpose
consequential damages
pleadings
19. 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.
motion for judgment on the pleadings
vesting
undisclosed principal
alien corporation
20. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.
forum-selection clause
check
articles of organization
interrogatories
21. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.
taking
drawer
equal dignity rule
federal question
22. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o
quota
devisee
dissolution
binder
23. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.
unilateral mistake
tender
offer
tangible employment action
24. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.
act of state doctrine
policy
S corporation
writ of certiorari
25. The act of transferring to another all or part of one's duties arising under a contract.
fictitious payee
sale or return
delegation of duties
holder in due course (HDC)
26. 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
red herring prospectus
joint and several liability
perfection
U.S. trustee
27. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.
right of reimbursement
choice-of-language clause
execution
SEC Rule 10b-5
28. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would
wrongful discharge
per stirpes
transfer warranties
debtor
29. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).
Regulation E
letter of credit
power of attorney
certified check
30. A provision in a contract stipulating that certain unforeseen events
agreement
holographic will
force majeure clause
appraisal right
31. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.
performance
contract
holding company
voidable contract
32. The act of accepting and giving legal force to an obligation that previously was not enforceable.
release
ratification
delegation of duties
tender offer
33. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).
trust
S corporation
intermediary bank
domain name
34. Barred - impeded - or precluded.
money laundering
agency
estopped
creditors' composition agreement
35. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.
double jeopardy
negotiation
offeror
alienation
36. The number of members of a decision-making body that must be present before business may be transacted.
dissolution
quorum
preference
closed shop
37. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.
secondary boycott
dissociation
presentment
fee simple
38. 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
sublease
mens rea
usage of trade
winding up
39. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued
confiscation
articles of partnership
writ of execution
stored-value card
40. The process of taking private property for public use through the government's power of eminent domain.
condemnation
information return
informal contract
S corporation
41. 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
course of dealing
unenforceable contract
continuation statement
assignor
42. 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
cyber mark
disclosed principal
certificate of deposit (CD)
constructive eviction
43. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.
depositary bank
insider trading
shipment contract
grand jury
44. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.
bankruptcy court
objective theory of contracts
past consideration
holder
45. 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.
recording statutes
bona fide occupational qualification (BFOQ)
deposition
joint tenancy
46. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.
sublease
misdemeanor
preference
motion for a directed verdict
47. A landlord's act of depriving a tenant of possession of the leased premises.
eviction
proceeds
intended beneficiary
takeover
48. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t
implied warranty of fitness for a particular purpose
browse-wrap terms
sale on approval
probable cause
49. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.
exclusionary rule
consolidation
generally accepted auditing standards (GAAS)
tombstone ad
50. The creation of an absolute or unconditional right or power.
conveyance
vesting
nonpossessory interest
consumer-debtor