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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 bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






2. A trademark in cyberspace.






3. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






4. State laws that regulate the offering and sale of securities.






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






6. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






7. 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






8. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






9. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.






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






11. In a given state - a corporation that does business in - and is organized under the law of - that state.






12. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






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






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






15. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






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






17. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






18. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






19. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






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






21. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






22. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






23. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.






24. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






25. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






26. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






27. An equitable remedy requiring exactly the performance that was specified; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique.






28. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






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






30. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






31. A party that holds a lien that is subordinate to one or more other liens on the same property.






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






33. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






34. The relationship that exists between the promisor and the promisee of a contract.






35. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.






36. A revocable right or privilege of a person to come onto another person's land.






37. The process of proving and validating a will and settling all matters pertaining to an estate.






38. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






39. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






40. A party to whom the rights under a contract are transferred - or assigned.






41. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






42. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






43. 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.






44. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






45. A charge by a grand jury that a named person has committed a crime.






46. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






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






48. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






49. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






50. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.