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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. 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.






2. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






3. 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.






4. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






5. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






6. 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.






7. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






8. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






9. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






10. A party to whom contractual obligations are transferred - or delegated.






11. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






12. 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.






13. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






14. The process of taking private property for public use through the government's power of eminent domain.






15. 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






16. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






17. In a sale of goods - the express designation of the goods provided for in the contract.






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






19. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






20. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






21. A valid contract rendered unenforceable by some statute or law.






22. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






23. An employer's termination of an employee's employment in violation of the law.






24. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






25. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






26. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






27. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






28. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






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






30. A contract that is formed electronically.






31. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






32. A crime committed on the Internet.






33. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






34. 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.






35. 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.






36. The goods and services that domestic firms sell to buyers located in other countries.






37. In the context of real property - an interest in land that does not include any right to possess the property.






38. 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.






39. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






40. 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






41. A state law providing that employees may not be required to join a union as a condition of retaining employment.






42. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






43. 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






44. A writ from a higher court asking the lower court for the record of a case.






45. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.






46. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






47. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






48. A tax on imported goods.






49. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






50. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.