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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 negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






2. One for whose benefit a promise is made in a contract but who is not a party to the contract.






3. 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.






4. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






5. 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.






6. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.






7. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






8. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






9. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






10. A contract that results when an offer can be accepted only by the offeree's performance.






11. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






12. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






13. A contract that by law requires a specific form - such as being executed under seal - for its validity.






14. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






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






16. 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.






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






18. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






19. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






20. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






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






22. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






23. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






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






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






26. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






27. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






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






29. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






30. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






31. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






32. In the context of real property - an interest in land that does not include any right to possess the property.






33. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






34. 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.






35. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






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






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






38. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






39. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






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






41. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






42. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






43. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






44. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






45. The act of stealing another's identifying information






46. One designated in a will to receive a gift of real property.






47. Any interest in personal property or fixtures that secures payment or performance of an obligation.






48. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






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






50. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.