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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. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






2. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






3. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






4. 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.






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






6. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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7. Joint ownership.






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






9. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






10. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






11. 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).






12. 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.






13. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






14. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






15. A person to whom an offer is made.






16. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






17. 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.






18. A promise or commitment to perform or refrain from performing some specified act in the future.






19. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






20. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






21. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






22. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






23. 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.






24. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






25. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.






26. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






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






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






29. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






30. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a






31. The idea that corporations can and should act ethically and be accountable to society for their actions.






32. Under the Uniform Commercial Code Section 2-403(2) - a rule stating that if goods are entrusted to a merchant who deals in goods of that kind - the merchant has the power to transfer those goods and all rights to them to a buyer in the ordinary cours






33. 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.






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






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






36. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






37. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






38. 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.






39. 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.






40. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






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






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






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






44. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






45. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






46. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






47. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






48. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






49. A prediction concerning potential loss based on known and unknown factors.






50. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.