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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. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






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






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






4. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






5. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






6. In the context of real property - an interest in land that does not include any right to possess the property.






7. The idea that corporations can and should act ethically and be accountable to society for their actions.






8. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






9. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






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






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






12. 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.






13. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






14. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.






15. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






16. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






17. 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.






18. 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






19. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






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






21. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






22. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






23. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil






24. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






25. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






26. 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.






27. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






28. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






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






30. An estate in realty held by a tenant under a lease. In every leasehold estate - the tenant has a qualified right to possess and/or use the land.






31. The goods and services that domestic firms sell to buyers located in other countries.






32. The process of taking private property for public use through the government's power of eminent domain.






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






34. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






35. 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.






36. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






37. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






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






39. One to whom an obligation is owed.






40. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






41. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






42. The use of an asset that is not the subject of a loan to collateralize that loan.






43. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






44. 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






45. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






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






47. A party to whom the rights under a contract are transferred - or assigned.






48. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






49. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






50. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.