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Test your basic knowledge |

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. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






2. All forms of personal property.






3. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






4. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).






5. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






6. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






7. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






8. 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.






9. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






10. The process of resolving a dispute through the court system.






11. 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.






12. 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






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






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






15. 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






16. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






17. 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.






18. 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.






19. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






20. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






21. A corporation whose shareholders are limited to a small group of persons - often including only family members.






22. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






23. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil






24. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






25. A set limit on the amount of goods that can be imported.






26. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






27. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio






28. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






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






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






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






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






33. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






34. A tax on imported goods.






35. Charging an illegal rate of interest.






36. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






37. Property that is acquired by the debtor after the execution of a security agreement.






38. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






39. 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






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






41. A state statute under which certain types of contracts must be in writing to be enforceable.






42. Generally - the value given in return for a promise; involves two elements






43. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






44. 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.






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






46. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






47. 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.






48. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






49. 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.






50. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






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