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Test your basic knowledge |
Business Law Fundamentals
Start Test
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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 merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the
incidental damages
short-form merger
void contract
SEC Rule 10b-5
2. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'
e-signature
lessee
bearer instrument
cover
3. An order by a bank customer to his or her bank not to pay or certify a certain check.
stop-payment order
civil law system
motion for judgment n.o.v.
mortgagor
4. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.
market-share liability
motion for a directed verdict
purchase-money security interest (PMSI)
adverse possession
5. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].
cure
preemptive rights
choice-of-law clause
informal contract
6. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.
commingle
unilateral contract
bilateral mistake
unilateral mistake
7. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ
reaffirmation agreement
purchase-money security interest (PMSI)
rescission
motion to dismiss
8. 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
forum-selection clause
default
Totten trust
outside director
9. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.
testamentary trust
rescission
good faith purchaser
distribution agreement
10. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.
short-form merger
reply
judicial review
business necessity
11. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.
holding company
generally accepted accounting principles (GAAP)
grand jury
discharge
12. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
treaty
burglary
articles of organization
act of state doctrine
13. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
collective mark
tombstone ad
nominal damages
counteroffer
14. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.
estopped
piercing the corporate veil
bylaws
reply
15. The act of accepting and giving legal force to an obligation that previously was not enforceable.
personal defenses
executory contract
ratification
tender offer
16. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.
general partner
nuncupative will
U.S. trustee
cost-benefit analysis
17. 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.
letter of credit
alien corporation
incidental beneficiary
notary public
18. 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
sovereign immunity
dissociation
writ of execution
self-defense
19. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
universal defenses
duress
automatic stay
mislaid property
20. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'
bailee
stock certificate
unenforceable contract
hacker
21. The act of transferring to another all or part of one's rights arising under a contract.
assignment
payee
merchant
execution
22. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.
life estate
integrated contract
question of fact
right of subrogation
23. In a given state - a corporation that does business in - and is organized under the law of - that state.
anticipatory repudiation
vicarious liability
domestic corporation
unconscionable contract or clause
24. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.
voir dire
defalcation
motion for a new trial
cyberterrorist
25. 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
malpractice
fixture
past consideration
actus reus
26. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.
franchisor
pleadings
choice-of-law clause
articles of partnership
27. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.
exculpatory clause
pass-through entity
mutual fund
beyond a reasonable doubt
28. A document by which title to property (usually real property) is passed.
Statute of Frauds
e-signature
release
deed
29. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
short-form merger
tippee
information
mailbox rule
30. A trust that is created by will and therefore does not take effect until the death of the testator.
estopped
testamentary trust
reformation
firm offer
31. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.
cybersquatting
voidable contract
burglary
categorical imperative
32. A contract between the issuer of a bond and the bondholder.
burglary
past consideration
bond indenture
mirror image rule
33. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.
acceleration clause
self-defense
stock certificate
replevin
34. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.
categorical imperative
limited liability company (LLC)
treaty
concurrent jurisdiction
35. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.
guarantor
question of fact
bounty payment
objective theory of contracts
36. A contract that does not require a specified form or formality to be valid.
informal contract
partially disclosed principal
dumping
e-evidence
37. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.
scienter
underwriter
emancipation
past consideration
38. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h
self-incrimination
alternative dispute resolution (ADR)
codicil
click-on agreement
39. A person who receives inside information.
express contract
tippee
tangible property
promise
40. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.
cover
e-contract
partnering agreement
act of state doctrine
41. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.
beyond a reasonable doubt
consequential damages
default judgment
alternative dispute resolution (ADR)
42. Any bank handling an item for collection - except the payor bank.
cram-down provision
quota
implied-in-fact contract
collecting bank
43. State laws that regulate the offering and sale of securities.
fixture
merchant
blue sky laws
gift inter vivos
44. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.
taking
floating lien
private equity capital
protected class
45. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
intended beneficiary
necessaries
agency
release
46. 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
discharge
release
contractual capacity
cover
47. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.
objective theory of contracts
holding company
voidable contract
output contract
48. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201
periodic tenancy
Statute of Frauds
insolvent
closed shop
49. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
self-defense
output contract
contractual capacity
release
50. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t
prospectus
necessaries
national law
digital cash
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