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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. A trust that is created by will and therefore does not take effect until the death of the testator.






2. A person in possession of an instrument payable to bearer or indorsed in blank.






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






4. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






5. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






6. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






7. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






8. A legally recognized authority that can certify the validity of digital signatures.






9. 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






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






11. A set of policies or procedures affecting the way a corporation is directed or controlled.






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






13. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






14. 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.






15. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






16. 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






17. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






18. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.






19. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.






20. 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.






21. 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.






22. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






23. 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.






24. 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.






25. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






26. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






27. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






28. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






29. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






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






31. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






32. 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.






33. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






34. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






35. A check drawn by a bank on itself.

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






37. 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).






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






39. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






40. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






41. 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.






42. An agreement that creates or provides for a security interest between the debtor and a secured party.






43. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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44. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






45. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






46. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






47. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






48. 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






49. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






50. 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.







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