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






2. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






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






4. 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.






5. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






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






7. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.






8. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






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






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






11. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






12. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






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






14. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






15. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






16. 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 -






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






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






19. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






20. The act of refraining from an action that one has a legal right to undertake.






21. An action to carry into effect the directions in a court decree or judgment.






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






23. An implied promise by a landlord that rented residential premises are fit for human habitation






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






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






26. 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.






27. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






28. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






29. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






30. 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.






31. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






32. 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.






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






34. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






35. 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.






36. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






37. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






38. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






39. 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.






40. 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.






41. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






42. A contract that has been completely performed by both parties.






43. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






44. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






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






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






47. 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.






48. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.






49. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






50. 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