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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. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






2. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






3. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






4. Having left a will at death.






5. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






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






7. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






8. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






9. A crime committed on the Internet.






10. 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.






11. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






12. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






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






14. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






15. An agreement by two or more persons to carry on - as co-owners - a business for profit.






16. 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.






17. 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






18. A person to whom an offer is made.






19. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






20. Goods that conform to contract specifications.






21. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






22. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






23. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






24. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






25. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






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






27. A person on the board of directors who does not hold a management position at the corporation.






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






29. Property that is movable; any property that is not real property.






30. 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).






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






32. 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.






33. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






34. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






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






36. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






37. Land and everything attached to it - such as trees and buildings.






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






39. A person who receives inside information.






40. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






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






42. Reasonable grounds for believing that a person should be arrested or searched.






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






44. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






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






46. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






47. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






48. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






49. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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50. An agreement that creates or provides for a security interest between the debtor and a secured party.