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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.
breach of contract
SEC Rule 10b-5
watered stock
preferred stock
2. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.
condition subsequent
firm offer
identification
testamentary trust
3. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
pleadings
gift inter vivos
tariff
chattel
4. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.
performance
probate
distribution agreement
act of state doctrine
5. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.
distribution agreement
right-to-work law
copyright
profit
6. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.
litigation
fungible goods
lessee
dissolution
7. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).
e-evidence
proceeds
scienter
garnishment
8. A provision in a contract stipulating that certain unforeseen events
universal defenses
force majeure clause
award
easement
9. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla
generally accepted accounting principles (GAAP)
general partner
Totten trust
question of fact
10. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).
offeree
agency
trust
sale
11. A state law providing that employees may not be required to join a union as a condition of retaining employment.
promisor
lessor
right-to-work law
course of dealing
12. A charge by a grand jury that a named person has committed a crime.
requirements contract
cybernotary
indictment
e-agent
13. 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.
motion for judgment n.o.v.
mitigation of damages
condemnation
business ethics
14. 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.'
per capita
easement
beyond a reasonable doubt
quota
15. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.
suretyship
incidental beneficiary
preference
corporate governance
16. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
motion for summary judgment
inter vivos trust
identification
federal question
17. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.
beyond a reasonable doubt
intangible property
artisan's lien
executor
18. 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
record
double jeopardy
constructive eviction
right-to-work law
19. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
incidental beneficiary
implied-in-fact contract
implied warranty
bankruptcy court
20. A set of policies or procedures affecting the way a corporation is directed or controlled.
corporate governance
bond indenture
rule of four
mutual fund
21. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.
express warranty
bearer instrument
piercing the corporate veil
e-contract
22. The use of an asset that is not the subject of a loan to collateralize that loan.
seniority system
intestate
cross-collateralization
larceny
23. 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.
acceptance
special warranty deed
actus reus
S corporation
24. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.
limited liability company (LLC)
good faith purchaser
integrated contract
novation
25. A network that can be used by persons located (distributed) around the country or the globe to share computer files.
distributed network
right-to-work law
duress
mortgagee
26. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.
wrongful discharge
intermediary bank
quitclaim deed
e-signature
27. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.
forum-selection clause
check
seasonably
revocation
28. The act of transferring to another all or part of one's rights arising under a contract.
venture capital
periodic tenancy
answer
assignment
29. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.
tender of delivery
federal question
past consideration
seniority system
30. An order by a bank customer to his or her bank not to pay or certify a certain check.
dumping
retained earnings
stop-payment order
money laundering
31. The geographic district in which a legal action is tried and from which the jury is selected.
venue
deficiency judgment
articles of organization
cybersquatting
32. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a
vicarious liability
ratification
employment at will
common stock
33. A company whose business activity is holding shares in another company.
national law
sales contract
holding company
stock certificate
34. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
independent contractor
lessor
condition
right of contribution
35. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.
act of state doctrine
gift causa mortis
petty offense
lien
36. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
burglary
operating agreement
promisor
inter vivos trust
37. Any bank handling an item for collection - except the payor bank.
liquidation
eviction
act of state doctrine
collecting bank
38. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.
periodic tenancy
white-collar crime
insurable interest
shelter principle
39. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.
fiduciary
intangible property
arbitration clause
bailor
40. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.
per stirpes
delegatee
premium
debtor in possession (DIP)
41. 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.
ratification
question of fact
patent
confusion
42. A revocable right or privilege of a person to come onto another person's land.
tenancy at will
confusion
objective theory of contracts
license
43. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
cyberterrorist
alternative dispute resolution (ADR)
mediation
consent
44. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.
limited partner
stale check
revocation
international law
45. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.
investment company
docket
liquidated debt
double jeopardy
46. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.
tender
intangible property
concurrent jurisdiction
pass-through entity
47. 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
tariff
tenancy at sufferance
intangible property
stock certificate
48. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i
fungible goods
firm offer
international organization
implied warranty of merchantability
49. 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
electronic fund transfer (EFT)
shipment contract
limited partner
warranty deed
50. A corporation whose shareholders are limited to a small group of persons - often including only family members.
close corporation
arbitration
winding up
undisclosed principal