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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 statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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2. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






3. A party to whom contractual obligations are transferred - or delegated.






4. The act of accepting and giving legal force to an obligation that previously was not enforceable.






5. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






6. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






7. 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






8. A contract that does not require a specified form or formality to be valid.






9. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






10. The act of transferring to another all or part of one's duties arising under a contract.






11. The basic document filed with a designated state official by which a limited partnership is formed.






12. 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






13. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






14. 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.






15. The act of transferring to another all or part of one's rights arising under a contract.






16. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






17. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






18. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






19. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






20. 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






21. 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.






22. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






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






24. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






25. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.






26. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






27. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






28. The legal avoidance - or setting aside - of a contractual obligation.






29. One who entrusts goods to a bailee.






30. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






31. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






32. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






33. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






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






35. Charging an illegal rate of interest.






36. 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






37. Property that is movable; any property that is not real property.






38. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






39. A state law providing that employees may not be required to join a union as a condition of retaining employment.






40. 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






41. Any bank handling an item for collection - except the payor bank.






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






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






44. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






45. 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






46. One who owes an obligation to another.






47. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






48. Any interest in personal property or fixtures that secures payment or performance of an obligation.






49. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






50. 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.