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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. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






2. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






3. The authority of a court to hear and decide a specific case.






4. 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






5. 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.






6. Property resulting from intellectual - creative processes.






7. 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.






8. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






9. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






10. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






11. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






12. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






13. 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.






14. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






15. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






16. 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






17. A gift of personal property by will (from the verb to bequeath).






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






19. 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.






20. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






21. A person to whom an instrument is made payable.






22. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






23. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






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






25. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






26. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






27. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






28. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






29. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






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 check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






32. Information or processes that give a business an advantage over competitors that do not know the information or processes.






33. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






34. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






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






36. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






37. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.






38. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






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






40. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






41. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






42. 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.






43. 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.






44. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






45. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






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






47. A crime






48. A formal legal document prepared by a party's attorney and submitted to an appellate court when a case is appealed - which outlines the facts and issues of the case that are in dispute.






49. A contract in which one party forfeits the right to pursue a legal claim against the other party.






50. A corporation whose shareholders are limited to a small group of persons - often including only family members.