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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. 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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2. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






3. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






4. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






5. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






6. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






7. 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






8. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






9. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






10. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






11. 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.






12. A person who makes a promise.






13. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil






14. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






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






16. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






17. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






18. 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






19. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






20. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






21. A party to whom contractual obligations are transferred - or delegated.






22. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






23. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






24. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






25. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






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






27. 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.






28. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






29. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






30. Property with which the owner has involuntarily parted and then cannot find or recover.






31. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.






32. 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.






33. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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






35. Procedurally - a plaintiff's response to a defendant's answer.






36. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






37. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






38. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






39. 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






40. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






41. 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.






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






43. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






44. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






45. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.






46. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






47. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






48. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






49. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






50. 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.







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