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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 designation in the United States for a corporation formed in another country but doing business in the United States.
intended beneficiary
cybersquatting
guarantor
alien corporation
2. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen
gift
financing statement
constructive eviction
consolidation
3. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted
past consideration
objective theory of contracts
digital cash
computer crime
4. 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.
distributed network
beyond a reasonable doubt
self-defense
Federal Reserve System
5. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.
tangible property
question of law
dissociation
tenancy by the entirety
6. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.
incidental damages
disparate-impact discrimination
plea bargaining
motion for judgment on the pleadings
7. The document filed with a designated state official by which a limited liability company is formed.
articles of organization
promise
negotiation
certification mark
8. 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.
negotiable instrument
jurisdiction
summons
petition in bankruptcy
9. A person on the board of directors who is also an officer of the corporation.
inside director
trade secret
secondary boycott
binder
10. 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
insurable interest
tender
collecting bank
partnering agreement
11. 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.
special warranty deed
embezzlement
creditors' composition agreement
bona fide occupational qualification (BFOQ)
12. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.
constructive eviction
peer-to-peer (P2P) networking
international organization
general partner
13. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.
prenuptial agreement
fee simple absolute
small claims court
notary public
14. 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
trade name
document of title
motion for a new trial
tenancy at sufferance
15. The relationship that exists between the promisor and the promisee of a contract.
privity of contract
insolvent
limited partnership
corporate social responsibility
16. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.
writ of execution
past consideration
corporation
reformation
17. The act of transferring to another all or part of one's duties arising under a contract.
delegation of duties
express warranty
acceptance
stale check
18. 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
minimum wage
debtor
categorical imperative
estate in property
19. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.
eviction
shrink-wrap agreement
intermediary bank
obligee
20. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.
past consideration
tenancy by the entirety
articles of partnership
sole proprietorship
21. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.
union shop
order for relief
transfer warranties
target corporation
22. 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.
piercing the corporate veil
distributed network
after-acquired property
tombstone ad
23. 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.
S corporation
information
periodic tenancy
entrapment
24. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.
necessaries
insolvent
life estate
junior lienholder
25. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.
fixture
writ of attachment
floating lien
dissolution
26. The purchase or sale of securities on the basis of information that has not been made available to the public.
security agreement
insider trading
closed shop
right of subrogation
27. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
liquidation
extension clause
condition subsequent
tender
28. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.
correspondent bank
obligee
articles of partnership
cure
29. The power of a government to take land from private citizens for public use on the payment of just compensation.
order instrument
bylaws
eminent domain
covenant not to sue
30. 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.
debtor
domain name
incidental damages
life estate
31. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
private equity capital
joint tenancy
accord and satisfaction
consignment
32. 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.
intangible property
tippee
shrink-wrap agreement
mitigation of damages
33. An agreement by two or more persons to carry on - as co-owners - a business for profit.
implied warranty of habitability
partnership
stale check
outside director
34. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
click-on agreement
necessaries
nominal damages
usage of trade
35. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d
secondary boycott
Federal Reserve System
express warranty
intended beneficiary
36. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately
summary jury trial (SJT)
tenancy in common
articles of incorporation
chattel
37. State laws that regulate the offering and sale of securities.
embezzlement
appraisal right
fee simple absolute
blue sky laws
38. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.
backdating
bounty payment
limited liability partnership (LLP)
surety
39. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.
exclusive distributorship
real property
white-collar crime
administrator
40. 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.
tangible employment action
breach of contract
promissory note
purchase-money security interest (PMSI)
41. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.
long arm statute
insurance
promisee
lessee
42. 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
federal question
franchisee
malpractice
acceptor
43. Charging an illegal rate of interest.
conforming goods
insider trading
disclosed principal
usury
44. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.
civil law system
unilateral mistake
cyber mark
right of subrogation
45. 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.
proceeds
fiduciary
correspondent bank
answer
46. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.
question of fact
automatic stay
condemnation
unenforceable contract
47. A set of governing rules adopted by a corporation or other association.
entrapment
discharge
bylaws
frustration of purpose
48. 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.
due diligence
venue
assignment
shipment contract
49. 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.
stop-payment order
holder
international law
dividend
50. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
bylaws
duress
bankruptcy court
arson