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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. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.
cram-down provision
consequential damages
condition
payee
2. Joint ownership.
interrogatories
concurrent ownership
complaint
market-share liability
3. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.
petty offense
bond
signature
limited liability partnership (LLP)
4. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.
default
necessaries
right of subrogation
closed shop
5. The term used to designate a person who has an ownership interest in a limited liability company.
maker
security interest
e-contract
member
6. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'
bailor
hacker
proxy
blue laws
7. A designation in the United States for a corporation formed in another country but doing business in the United States.
Statute of Frauds
order for relief
alien corporation
traveler's check
8. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.
expropriation
negotiation
forum-selection clause
agreement
9. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.
policy
maker
writ of certiorari
forgery
10. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
utilitarianism
inter vivos trust
cost-benefit analysis
consolidation
11. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.
bounty payment
securities
motion for judgment on the pleadings
commercial impracticability
12. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.
informal contract
franchisee
union shop
corporation
13. A crime committed on the Internet.
cyber crime
will
probable cause
cease-and-desist order
14. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.
devise
copyright
implied warranty of habitability
seasonably
15. The process of proving and validating a will and settling all matters pertaining to an estate.
probate
answer
joint tenancy
accord and satisfaction
16. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.
accord and satisfaction
drawer
contractual capacity
cashier's check
17. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.
motion for a directed verdict
mortgagee
chattel
accredited investors
18. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.
confusion
junior lienholder
motion for judgment n.o.v.
right of reimbursement
19. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.
personal defenses
insurable interest
limited partner
community property
20. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.
click-on agreement
output contract
joint and several liability
writ of attachment
21. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.
acceleration clause
preference
merger
ultra vires
22. 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
artisan's lien
novation
dumping
constructive eviction
23. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.
insider trading
distribution agreement
preference
incidental damages
24. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.
foreign exchange market
creditors' composition agreement
promissory note
exculpatory clause
25. A will written entirely in the signer's handwriting and usually not witnessed.
presentment
white-collar crime
accession
holographic will
26. 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.
mirror image rule
SEC Rule 10b-5
restitution
notary public
27. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo
winding up
promisor
tangible employment action
devise
28. 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
trade dress
partially disclosed principal
limited partnership
mortgagor
29. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
arbitration clause
condition
consent
record
30. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha
condition
franchisee
real property
insurable interest
31. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.
deposition
correspondent bank
click-on agreement
online dispute resolution (ODR)
32. 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
objective theory of contracts
novation
bilateral contract
gift inter vivos
33. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).
corporate governance
discharge
utilitarianism
consumer-debtor
34. The portion of a corporation's profits that has not been paid out as dividends to shareholders.
undisclosed principal
forum-selection clause
artisan's lien
retained earnings
35. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.
affirmative action
intangible property
entrustment rule
will
36. Ownership rights in property - including the right to possess and control the property.
dominion
disaffirmance
discovery
generally accepted accounting principles (GAAP)
37. 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.
tenancy by the entirety
double jeopardy
award
nuncupative will
38. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan
self-defense
unreasonably dangerous product
undisclosed principal
incidental damages
39. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.
good faith purchaser
garnishment
mutual fund
fixture
40. A check - other than a certified check - that is presented for payment more than six months after its date.
stale check
community property
restitution
partnership
41. 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.
corporate governance
winding up
fictitious payee
notary public
42. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D
recording statutes
alternative dispute resolution (ADR)
hot-cargo agreement
arson
43. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.
minimum wage
discharge
corporation
confiscation
44. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
arbitration clause
penalty
beyond a reasonable doubt
motion for a directed verdict
45. 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.
charitable trust
trade name
felony
delegator
46. 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.
liquidated debt
junior lienholder
e-signature
trade name
47. A contract that does not require a specified form or formality to be valid.
informal contract
certification mark
obligor
self-incrimination
48. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.
order for relief
outside director
indorsement
red herring prospectus
49. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).
joint tenancy
promissory estoppel
mutual fund
community property
50. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.
entrustment rule
wrongful discharge
special warranty deed
intestacy laws