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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 small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






2. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






3. Having left a will at death.






4. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






5. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






6. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






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

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8. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






9. A landlord's act of depriving a tenant of possession of the leased premises.






10. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






11. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






12. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






13. Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender - national origin - and religion - but not race.






14. Any bank handling an item for collection - except the payor bank.






15. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






16. 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






17. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






18. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






19. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






20. One designated in a will to receive a gift of real property.






21. 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






22. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






23. The process of resolving a dispute through the court system.






24. One for whose benefit a promise is made in a contract but who is not a party to the contract.






25. 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.






26. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






27. 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






28. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






29. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).






30. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






31. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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32. A will written entirely in the signer's handwriting and usually not witnessed.






33. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






34. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






35. All forms of personal property.






36. 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






37. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






38. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






39. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






40. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






41. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






42. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






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






44. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






45. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






46. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






47. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






48. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






49. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






50. A person who makes a promise.