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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. 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






2. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






3. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






4. 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.






5. 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.






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






7. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






8. A set limit on the amount of goods that can be imported.






9. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






10. 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.






11. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






12. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






13. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






14. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






15. 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.






16. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.






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






18. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






19. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






20. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






21. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






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






23. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






24. 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.






25. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






26. Standards concerning an auditor's professional qualities and the judgment exercised by him or her in the performance of an audit and report. The source of the standards is the American Institute of Certified Public Accountants.






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






28. The basic document filed with a designated state official by which a limited partnership is formed.






29. The document filed with a designated state official by which a limited liability company is formed.






30. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






31. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






32. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






33. 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.






34. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






35. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






36. 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






37. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






38. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






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






40. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






41. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






42. A company whose business activity is holding shares in another company.






43. The act of stealing another's identifying information






44. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






45. In a given state - a corporation that does business in the state without being incorporated therein.






46. A set of policies or procedures affecting the way a corporation is directed or controlled.






47. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






48. 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.






49. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






50. A network that can be used by persons located (distributed) around the country or the globe to share computer files.