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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. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv
valid contract
forum-selection clause
tender of delivery
secured transaction
2. A worldwide system in which foreign currencies are bought and sold.
complaint
resulting trust
overdraft
foreign exchange market
3. A person on the board of directors who is also an officer of the corporation.
inside director
choice-of-language clause
actus reus
output contract
4. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.
ethics
covenant not to sue
cybersquatting
floating lien
5. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.
debtor in possession (DIP)
insolvent
agreement
certification mark
6. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
mislaid property
preferred creditor
collateral promise
recording statutes
7. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
seasonably
will
contractual capacity
payee
8. One to whom goods are entrusted by a bailor.
bailee
cross-collateralization
shrink-wrap agreement
mitigation of damages
9. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.
tangible employment action
question of law
intestacy laws
foreign exchange market
10. 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
presentment
forum-selection clause
offeree
perfection
11. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.
accession
insurance
output contract
sovereign immunity
12. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.
U.S. trustee
shareholder's derivative suit
sovereign immunity
cure
13. The bank on which a check is drawn (the drawee bank).
installment contract
payor bank
I-551 Alien Registration Receipt
question of fact
14. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.
payor bank
spendthrift trust
consequential damages
constructive discharge
15. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.
intermediary bank
accession
intangible property
delegation of duties
16. Drawee that is legally obligated to pay an instrument when it is presented later for payment.
electronic fund transfer (EFT)
acceptor
self-incrimination
employment contract
17. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.
attachment
gift causa mortis
fee simple
venture capital
18. The process of proving and validating a will and settling all matters pertaining to an estate.
stock options
shareholder's derivative suit
probate
act of state doctrine
19. Land and everything attached to it - such as trees and buildings.
real property
service mark
accession
gift causa mortis
20. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.
certificate of deposit (CD)
collecting bank
spendthrift trust
security interest
21. 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
certified check
sale or return
inter vivos trust
SEC Rule 10b-5
22. A crime committed on the Internet.
cyber crime
affirmative action
short-form merger
unenforceable contract
23. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.
e-agent
tariff
arbitration
promise
24. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.
continuation statement
service mark
warranty deed
certified check
25. Reasonable grounds for believing that a person should be arrested or searched.
red herring prospectus
intestacy laws
dishonor
probable cause
26. 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
predominant-factor test
nuncupative will
writ of execution
exclusive distributorship
27. A writ from a higher court asking the lower court for the record of a case.
writ of certiorari
preference
consolidation
copyright
28. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.
award
resulting trust
commercial impracticability
franchise
29. The first bank to receive a check for payment.
free-writing prospectus
deposition
artisan's lien
depositary bank
30. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.
proceeds
identity theft
disclosed principal
installment contract
31. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.
contract
life estate
gift causa mortis
per stirpes
32. 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
confusion
document of title
equal dignity rule
option contract
33. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.
probate
insider trading
per capita
motion for summary judgment
34. 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.
collective mark
Totten trust
stock warrant
will
35. 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
voidable contract
secured party
implied warranty of merchantability
co-surety
36. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.
nonpossessory interest
bailee
constructive discharge
presentment
37. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.
drawer
mutual fund
administrator
after-acquired property
38. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.
preferred stock
red herring prospectus
necessaries
award
39. Procedurally - a defendant's response to the plaintiff's complaint.
exclusive jurisdiction
answer
risk management
venture capital
40. 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.
choice-of-language clause
promisor
after-acquired property
gift
41. A party that holds a lien that is subordinate to one or more other liens on the same property.
junior lienholder
SEC Rule 10b-5
underwriter
debtor in possession (DIP)
42. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.
computer crime
mailbox rule
lessor
junior lienholder
43. 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).
generally accepted accounting principles (GAAP)
transfer warranties
power of attorney
forum-selection clause
44. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).
joint tenancy
disaffirmance
gift
stock certificate
45. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.
risk
e-evidence
motion to dismiss
community property
46. A prediction concerning potential loss based on known and unknown factors.
risk
license
impossibility of performance
preferred creditor
47. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.
robbery
recording statutes
concurrent conditions
correspondent bank
48. 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
expropriation
contractual capacity
personal defenses
49. The image and overall appearance of a product
closed shop
trade dress
emancipation
corporation
50. A person who makes an offer.
past consideration
offeror
license
tombstone ad