Test your basic knowledge |

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. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






2. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






3. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






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






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






6. Joint ownership.






7. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.






8. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






9. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






10. A public official authorized to attest to the authenticity of signatures.






11. The relationship that exists between the promisor and the promisee of a contract.






12. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






13. The legal avoidance - or setting aside - of a contractual obligation.






14. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






15. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






16. 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.






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






18. 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.






19. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






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






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






22. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.






23. A person appointed by a testator in a will to see that her or his will is administered appropriately.






24. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






25. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






26. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






27. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






28. 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






29. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






30. 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.






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






32. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.






33. A person to whom an offer is made.






34. 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.






35. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






36. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






37. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.






38. A charge by a grand jury that a named person has committed a crime.






39. Property with which the owner has voluntarily parted and then cannot find or recover.






40. A contract having no legal force or binding effect.






41. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






42. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






43. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






44. 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.






45. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






46. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






47. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






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






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






50. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.