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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 purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






2. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






3. 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






4. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein






5. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






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






7. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






8. One who entrusts goods to a bailee.






9. 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.






10. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






11. 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).






12. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






13. 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






14. Property with which the owner has involuntarily parted and then cannot find or recover.






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






16. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






17. 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.






18. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.






19. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






20. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






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






22. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






23. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






24. 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.






25. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






26. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of


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






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






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






30. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






31. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






32. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






33. A contract having no legal force or binding effect.






34. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






35. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






36. The creation of an absolute or unconditional right or power.






37. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






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






39. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






40. One to whom goods are entrusted by a bailor.






41. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






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






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






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






45. 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






46. Goods that conform to contract specifications.






47. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'






48. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.






49. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






50. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.