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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. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






2. A worldwide system in which foreign currencies are bought and sold.






3. 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.






4. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






5. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






6. 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.






7. An assertion that something either will or will not happen in the future.






8. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






9. 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.






10. A corporation whose shareholders are limited to a small group of persons - often including only family members.






11. The first bank to receive a check for payment.






12. Property with which the owner has voluntarily parted and then cannot find or recover.






13. Land and everything attached to it - such as trees and buildings.






14. The basic document filed with a designated state official by which a limited partnership is formed.






15. 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.






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






17. 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.






18. A public official authorized to attest to the authenticity of signatures.






19. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






20. A tax on imported goods.






21. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






22. 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 -






23. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






24. The bank on which a check is drawn (the drawee bank).






25. 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.






26. 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.






27. 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






28. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.






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






30. 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.






31. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






32. 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.






33. 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.






34. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






35. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






36. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






37. 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.






38. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






39. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






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

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






42. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.






43. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






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






45. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






46. The act of transferring to another all or part of one's rights arising under a contract.






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






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






49. 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.






50. A company whose business activity is holding shares in another company.