Test your basic knowledge |

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. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.






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






3. An agreement that creates or provides for a security interest between the debtor and a secured party.






4. 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.






5. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






6. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






7. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






8. A public official authorized to attest to the authenticity of signatures.






9. Joint ownership.






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






11. 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






12. 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.






13. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






14. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






15. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






16. A person who makes a promise.






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






18. A written - temporary insurance policy.






19. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






20. Charging an illegal rate of interest.






21. 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.






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






23. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






24. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






25. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






26. A writ from a higher court asking the lower court for the record of a case.






27. 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.






28. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






29. A person on the board of directors who is also an officer of the corporation.






30. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






31. 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






32. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






33. The term used to designate a person who has an ownership interest in a limited liability company.






34. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






35. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






36. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






37. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






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






39. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






40. The passing of title to property from the seller to the buyer for a price.






41. 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.






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






43. A state statute under which certain types of contracts must be in writing to be enforceable.






44. Law that pertains to a particular nation (as opposed to international law).






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






46. 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






47. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






48. 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.






49. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






50. 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.