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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. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.
securities
spendthrift trust
jurisdiction
quitclaim deed
2. 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.
leasehold estate
insider trading
cram-down provision
bilateral contract
3. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.
tenancy by the entirety
target corporation
employment at will
Federal Reserve System
4. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.
workers' compensation laws
license
forum-selection clause
after-acquired property
5. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.
private equity capital
merger
bond
forum-selection clause
6. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina
accession
Totten trust
novation
rescission
7. In insurance law - the price paid by the insured for insurance protection for a specified period of time.
acceptance
international organization
trademark
premium
8. The purchase or sale of securities on the basis of information that has not been made available to the public.
jurisdiction
watered stock
seasonably
insider trading
9. 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
stock warrant
browse-wrap terms
quota
obligor
10. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).
acceptor
abandoned property
consequential damages
profit
11. A person to whom an instrument is made payable.
condition subsequent
payee
cease-and-desist order
right-to-work law
12. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.
release
sales contract
bailment
liquidation
13. A set limit on the amount of goods that can be imported.
mirror image rule
abandoned property
quota
extension clause
14. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.
insurable interest
summary jury trial (SJT)
misdemeanor
fixture
15. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.
duress
ultra vires
personal defenses
electronic fund transfer (EFT)
16. 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.
personal defenses
cure
deficiency judgment
articles of incorporation
17. 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
penalty
implied warranty
right-to-work law
domain name
18. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.
mortgagor
risk management
acceptance
insolvent
19. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
vesting
duress
SEC Rule 10b-5
undisclosed principal
20. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
traveler's check
identification
entrapment
policy
21. Any voluntary transfer of property made without consideration - past or present.
gift
reply
export
corporation
22. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.
peer-to-peer (P2P) networking
consolidation
abandoned property
articles of incorporation
23. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio
floating lien
copyright
penalty
arbitration
24. A writ from a higher court asking the lower court for the record of a case.
mitigation of damages
gift inter vivos
writ of certiorari
insurable interest
25. 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
destination contract
smart card
depositary bank
writ of execution
26. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.
liquidation
copyright
legatee
misdemeanor
27. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.
accession
trust
deficiency judgment
click-on agreement
28. 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.
information return
certified check
probate court
dumping
29. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a
commingle
arbitration clause
testator
confusion
30. The failure - without legal excuse - of a promisor to perform the obligations of a contract.
special warranty deed
abandoned property
breach of contract
respondeat superior
31. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
private equity capital
concurrent conditions
exclusive distributorship
pass-through entity
32. One designated in a will to receive a gift of personal property.
federal question
novation
legatee
promissory note
33. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.
legacy
appraisal right
I-551 Alien Registration Receipt
predominant-factor test
34. Drawee that is legally obligated to pay an instrument when it is presented later for payment.
consideration
Totten trust
acceptor
beyond a reasonable doubt
35. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.
levy
tariff
testamentary trust
negotiable instrument
36. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.
recording statutes
devisee
cyber mark
employment discrimination
37. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.
apparent authority
I-9 verification
offeror
watered stock
38. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl
delegator
bequest
summons
limited partnership
39. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).
normal trade relations (NTR) status
resulting trust
implied-in-fact contract
bailee
40. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con
categorical imperative
cover
bounty payment
electronic fund transfer (EFT)
41. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.
motion for summary judgment
discovery
consignment
e-contract
42. A case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a case in which the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence to dispr
implied-in-fact contract
common stock
will
prima facie case
43. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.
scienter
product liability
parol evidence rule
summons
44. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.
sale or return
nonpossessory interest
private equity capital
alienation
45. 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.
crime
holographic will
short-form merger
investment contract
46. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.
imposter
bailment
delegatee
acceleration clause
47. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
business judgment rule
respondeat superior
corporation
extension clause
48. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.
unilateral mistake
usury
partnership
notary public
49. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.
power of attorney
shrink-wrap agreement
condition
workout
50. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
implied warranty
transfer warranties
premium
assignor