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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 worldwide system in which foreign currencies are bought and sold.






2. One designated in a will to receive a gift of personal property.






3. Having left a will at death.






4. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






5. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






6. The authority of a court to hear and decide a specific case.






7. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






8. 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.






9. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






10. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






11. A person to whom a promise is made.






12. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






13. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






14. A landlord's act of depriving a tenant of possession of the leased premises.






15. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201






16. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






17. A person on the board of directors who is also an officer of the corporation.






18. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






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






20. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






21. 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.






22. 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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23. 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.






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






25. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






26. The first bank to receive a check for payment.






27. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






28. 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.






29. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






30. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






31. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






32. 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.






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






34. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






35. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






36. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






37. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






38. Any voluntary transfer of property made without consideration - past or present.






39. 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






40. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






41. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






42. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






43. A written - temporary insurance policy.






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






45. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






46. 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.






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






48. 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






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






50. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.







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