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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. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.
contract
cross-collateralization
bona fide occupational qualification (BFOQ)
draft
2. A trust that is created by will and therefore does not take effect until the death of the testator.
fiduciary
insider trading
penalty
testamentary trust
3. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.
lien
blue sky laws
tenancy by the entirety
writ of execution
4. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.
identification
digital cash
civil law system
trademark
5. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.
litigation
fixed-term tenancy
liquidation
smart card
6. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -
foreign corporation
adverse possession
will
commercial impracticability
7. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.
seniority system
retained earnings
leasehold estate
document of title
8. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.
floating lien
cease-and-desist order
working papers
acceptor
9. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t
browse-wrap terms
affirmative action
traveler's check
corporation
10. A party to whom the rights under a contract are transferred - or assigned.
protected class
sale
mortgage
assignee
11. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
insurable interest
extension clause
gift
stored-value card
12. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.
lessee
acceleration clause
quasi contract
promise
13. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.
tender of delivery
overdraft
gift inter vivos
target corporation
14. 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
past consideration
exclusive jurisdiction
impossibility of performance
categorical imperative
15. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.
consignment
concurrent conditions
creditors' composition agreement
retained earnings
16. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.
license
principle of rights
holding company
incidental beneficiary
17. 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.
motion for judgment on the pleadings
sales contract
mutual fund
discharge
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.
acceptance
cross-collateralization
expropriation
transfer warranties
19. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.
requirements contract
policy
entrustment rule
negotiation
20. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.
employment discrimination
probate
constructive delivery
entrapment
21. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.
debtor in possession (DIP)
life estate
risk
insurable interest
22. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.
lease agreement
assignee
cyber mark
counteroffer
23. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.
eviction
entrustment rule
clearinghouse
bailor
24. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.
insurable interest
alternative dispute resolution (ADR)
exclusive jurisdiction
exculpatory clause
25. 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
garnishment
promisee
delegator
implied warranty of fitness for a particular purpose
26. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain
double jeopardy
preemptive rights
independent contractor
blue sky laws
27. The act of accepting and giving legal force to an obligation that previously was not enforceable.
identity theft
sexual harassment
imposter
ratification
28. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.
acceleration clause
articles of incorporation
appraisal right
deed
29. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen
judicial review
piercing the corporate veil
diversity of citizenship
secondary boycott
30. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t
forum-selection clause
bylaws
gift
commercial impracticability
31. A contract that by law requires a specific form - such as being executed under seal - for its validity.
course of performance
intestate
mediation
formal contract
32. 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.
browse-wrap terms
will substitutes
floating lien
independent contractor
33. A check - other than a certified check - that is presented for payment more than six months after its date.
legatee
life estate
stale check
wrongful discharge
34. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).
impossibility of performance
negotiation
fee simple
deposition
35. 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.
conveyance
investment contract
I-9 verification
writ of certiorari
36. Property with which the owner has involuntarily parted and then cannot find or recover.
duress
lost property
apparent authority
valid contract
37. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.
judicial review
breach of contract
promissory note
dissolution
38. Land and everything attached to it - such as trees and buildings.
exclusive distributorship
forgery
real property
counterclaim
39. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.
bond
stale check
risk management
product liability
40. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.
proceeds
lessor
fixed-term tenancy
valid contract
41. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
ratification
discharge
information
protected class
42. A corporation whose shareholders are limited to a small group of persons - often including only family members.
emancipation
franchisee
close corporation
assignee
43. 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
forbearance
contract
negotiation
levy
44. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.
commercial impracticability
promissory note
appraisal right
employment at will
45. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
tenancy at sufferance
draft
nuncupative will
gift inter vivos
46. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.
seniority system
tippee
drawee
reaffirmation agreement
47. 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.
I-9 verification
certificate of deposit (CD)
information return
equal dignity rule
48. One for whose benefit a promise is made in a contract but who is not a party to the contract.
cease-and-desist order
third party beneficiary
condition precedent
alternative dispute resolution (ADR)
49. A contract in which one party forfeits the right to pursue a legal claim against the other party.
red herring prospectus
release
I-9 verification
good faith purchaser
50. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.
personal defenses
shelter principle
beyond a reasonable doubt
express warranty