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






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






3. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






4. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






5. A person appointed by a testator in a will to see that her or his will is administered appropriately.






6. 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.






7. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






8. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






9. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






10. 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.






11. Property that is acquired by the debtor after the execution of a security agreement.






12. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






13. A contract between the issuer of a bond and the bondholder.






14. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






15. A state statute under which certain types of contracts must be in writing to be enforceable.






16. 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.






17. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






18. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






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






20. Information or processes that give a business an advantage over competitors that do not know the information or processes.






21. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






22. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






23. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






24. 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






25. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






26. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






27. A person who makes a promise.






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






29. 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.






30. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






31. 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).






32. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.






33. 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






34. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






35. One to whom an obligation is owed.






36. 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.






37. A person who receives inside information.






38. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






39. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






40. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






41. A crime






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






43. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






44. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






45. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






46. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






47. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






48. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






49. An agreement by two or more persons to carry on - as co-owners - a business for profit.






50. 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.







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