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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 prediction concerning potential loss based on known and unknown factors.






2. 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






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






4. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






5. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






6. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






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






8. A trademark in cyberspace.






9. 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






10. 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






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






12. 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






13. 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.






14. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






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






16. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






17. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






18. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






19. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






20. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






21. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






22. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






23. A worldwide system in which foreign currencies are bought and sold.






24. 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.






25. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.






26. A contract that does not require a specified form or formality to be valid.






27. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






28. Barred - impeded - or precluded.






29. 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.






30. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






31. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






32. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






33. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






34. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.


35. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






36. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






37. 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.






38. 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).






39. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






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






41. 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.


42. One to whom goods are entrusted by a bailor.






43. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






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






45. Property with which the owner has voluntarily parted - with no intention of recovering it.






46. A person to whom an instrument is made payable.






47. A legally recognized authority that can certify the validity of digital signatures.






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. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.






50. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.