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Business Law Fundamentals

Subjects : law, business-law
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.

2. A party that holds a lien that is subordinate to one or more other liens on the same property.

3. 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.

4. The purchase or sale of securities on the basis of information that has not been made available to the public.

5. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.

6. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the

7. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.

8. 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.

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

10. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.

11. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D

12. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.

13. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.

14. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.

15. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.

16. The testimony of a party to a lawsuit or a witness taken under oath before a trial.

17. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.

18. A written - temporary insurance policy.

19. 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.

20. The act of accepting and giving legal force to an obligation that previously was not enforceable.

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

22. The first bank to receive a check for payment.

23. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.

24. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif

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

26. 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.

27. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).

28. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.

29. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.

30. Property with which the owner has voluntarily parted - with no intention of recovering it.

31. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.

32. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.

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. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.

35. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.

36. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.

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

38. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be

39. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a

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

41. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.

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

43. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.

44. In a given state - a corporation that does business in - and is organized under the law of - that state.

45. 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.

46. 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.

47. A legally recognized authority that can certify the validity of digital signatures.

48. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.

49. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.

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