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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. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






2. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






3. Reasonable grounds for believing that a person should be arrested or searched.






4. Under the Uniform Commercial Code Section 2-403(2) - a rule stating that if goods are entrusted to a merchant who deals in goods of that kind - the merchant has the power to transfer those goods and all rights to them to a buyer in the ordinary cours






5. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






6. 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






7. 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.






8. Property that is acquired by the debtor after the execution of a security agreement.






9. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






10. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






11. A person who makes a promise.






12. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






13. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






14. A person to whom a promise is made.






15. Law that pertains to a particular nation (as opposed to international law).






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






17. 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.






18. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






19. 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






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






21. 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.






22. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






23. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.






24. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






25. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






26. A valid contract rendered unenforceable by some statute or law.






27. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






28. A person on the board of directors who does not hold a management position at the corporation.






29. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






30. 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






31. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






32. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






33. 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.'






34. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






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






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






37. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






38. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






39. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






40. One who entrusts goods to a bailee.






41. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






42. Barred - impeded - or precluded.






43. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.






44. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






45. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






46. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






47. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






48. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






49. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






50. The act of refraining from an action that one has a legal right to undertake.







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