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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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. 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.
gift
online dispute resolution (ODR)
draft
presentment
2. A type of limited liability partnership owned by family members or fiduciaries of family members.
cover
motion to dismiss
exclusive jurisdiction
family limited liability partnership (FLLP)
3. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.
bounty payment
brief
intestacy laws
embezzlement
4. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w
apparent authority
restitution
letter of credit
risk management
5. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued
preferred stock
bylaws
common stock
continuation statement
6. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f
mediation
option contract
limited partner
dissolution
7. Property that is movable; any property that is not real property.
fiduciary
burglary
personal property
alternative dispute resolution (ADR)
8. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).
stored-value card
insider trading
mirror image rule
promissory note
9. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.
obligee
patent
acceptance
financing statement
10. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical
principle of rights
bearer
conveyance
collateral promise
11. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.
liquidated damages
secured transaction
money laundering
patent
12. 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
tenancy at sufferance
foreign exchange market
workout
identity theft
13. A contract between the issuer of a bond and the bondholder.
bond indenture
periodic tenancy
specific performance
preemptive rights
14. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.
motion for a directed verdict
foreign exchange market
incidental damages
insurable interest
15. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ
domestic corporation
mitigation of damages
accord and satisfaction
usage of trade
16. A set of policies or procedures affecting the way a corporation is directed or controlled.
apparent authority
corporate governance
preemptive rights
employment contract
17. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a
fee simple
assignor
plea bargaining
tangible property
18. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
reformation
target corporation
principle of rights
bearer
19. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.
debtor
seasonably
informal contract
foreign corporation
20. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.
Federal Reserve System
bailor
collective mark
agreement
21. 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
risk management
constructive delivery
discovery
consequential damages
22. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
award
gift
identification
intended beneficiary
23. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.
mislaid property
appraisal right
distributed network
per stirpes
24. State laws that regulate the offering and sale of securities.
stop-payment order
legacy
blue sky laws
life estate
25. 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.
liquidation
sole proprietorship
fixed-term tenancy
agency
26. Generally - the value given in return for a promise; involves two elements
consideration
probable cause
firm offer
defalcation
27. One to whom goods are entrusted by a bailor.
fictitious payee
motion for summary judgment
bailee
joint tenancy
28. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d
discharge
motion to dismiss
secondary boycott
franchisee
29. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro
mutual fund
concurrent jurisdiction
constructive trust
certification mark
30. 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
constructive eviction
check
destination contract
default judgment
31. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm
mutual fund
intestate
perfection
articles of incorporation
32. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.
tender
cease-and-desist order
venue
agency
33. 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.
proceeds
drawee
exclusive distributorship
quorum
34. The basic document filed with a designated state official by which a limited partnership is formed.
certificate of limited partnership
predominant-factor test
cybersquatting
ratification
35. An assertion that something either will or will not happen in the future.
bond indenture
dishonor
employment discrimination
promise
36. Property with which the owner has involuntarily parted and then cannot find or recover.
notary public
lost property
executor
sublease
37. A set of governing rules adopted by a corporation or other association.
bylaws
jurisdiction
penalty
union shop
38. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.
unilateral contract
dishonor
contractual capacity
fixture
39. Within a specified time period or - if no period is specified - within a reasonable time.
sale on approval
seasonably
will substitutes
usage of trade
40. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.
wrongful discharge
negotiation
mechanic's lien
Regulation E
41. 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
cross-collateralization
close corporation
joint and several liability
prenuptial agreement
42. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.
independent contractor
secured party
embezzlement
cram-down provision
43. A contract having no legal force or binding effect.
unilateral contract
sole proprietorship
void contract
release
44. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.
joint tenancy
working papers
condition precedent
holder in due course (HDC)
45. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].
franchisee
cure
money laundering
preferred creditor
46. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.
money laundering
lease
takeover
transfer warranties
47. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.
private equity capital
homestead exemption
appraisal right
investment company
48. The testimony of a party to a lawsuit or a witness taken under oath before a trial.
tippee
binder
collateral
deposition
49. A provision in a contract stipulating that certain unforeseen events
concurrent jurisdiction
force majeure clause
vesting
universal defenses
50. 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.
alienation
joint and several liability
automatic stay
consolidation