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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. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






2. 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.






3. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






4. 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.






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






6. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






7. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






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






9. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be






10. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






11. A will written entirely in the signer's handwriting and usually not witnessed.






12. 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.






13. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






14. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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15. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






16. 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.






17. 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.






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






19. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






20. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






21. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






22. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






23. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






24. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






25. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






26. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






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






28. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






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






30. A type of contract that arises when a promise is given in exchange for a return promise.






31. The creation of an absolute or unconditional right or power.






32. A person to whom an offer is made.






33. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






34. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






35. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






36. A tax on imported goods.






37. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.






38. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






39. 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






40. 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.






41. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






42. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






43. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






44. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






45. A party to whom the rights under a contract are transferred - or assigned.






46. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d






47. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






48. A person in possession of an instrument payable to bearer or indorsed in blank.






49. A revocable right or privilege of a person to come onto another person's land.






50. 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.