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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. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






2. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






3. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






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






5. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






6. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.






7. The use of an asset that is not the subject of a loan to collateralize that loan.






8. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






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






10. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






11. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






12. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






13. 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






14. 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






15. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






16. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






17. A case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a case in which the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence to dispr






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






19. 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.






20. All forms of personal property.






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






22. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






23. 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






24. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






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






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






27. 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






28. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






29. 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.






30. A person to whom an instrument is made payable.






31. 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).






32. 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.






33. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






34. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






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






36. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






37. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






38. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






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






40. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






41. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






42. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






43. 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.






44. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






45. A written - temporary insurance policy.






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






47. 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






48. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






49. An equity (ownership) interest in a corporation - measured in units of shares.






50. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.







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