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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. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.
binder
counteroffer
requirements contract
seniority system
2. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.
parol evidence rule
SEC Rule 10b-5
offer
consequential damages
3. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen
attachment
diversity of citizenship
power of attorney
burglary
4. 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.
service mark
brief
quitclaim deed
consumer-debtor
5. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.
distribution agreement
joint tenancy
promissory estoppel
anticipatory repudiation
6. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
distribution agreement
disclosed principal
continuation statement
workers' compensation laws
7. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events
legacy
novation
agreement
patent
8. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.
smart card
motion for summary judgment
joint tenancy
ethical reasoning
9. A contract that does not require a specified form or formality to be valid.
informal contract
insurance
motion for summary judgment
watered stock
10. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.
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
limited liability limited partnership (LLLP)
disaffirmance
lease agreement
attachment
12. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.
warranty deed
restitution
I-9 verification
joint tenancy
13. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.
adverse possession
holding company
securities
insurance
14. In insurance law - the price paid by the insured for insurance protection for a specified period of time.
insurable interest
product liability
premium
entrapment
15. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.
close corporation
collective mark
liquidation
small claims court
16. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.
small claims court
surety
exclusionary rule
e-agent
17. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj
warranty deed
liquidation
bearer instrument
motion for judgment on the pleadings
18. 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
fungible goods
void contract
overdraft
preemptive rights
19. One designated in a will to receive a gift of personal property.
impossibility of performance
legatee
export
employment contract
20. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins
restitution
forbearance
negotiation
express warranty
21. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.
acceleration clause
franchisee
peer-to-peer (P2P) networking
mortgagee
22. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.
lost property
cross-collateralization
adverse possession
motion for summary judgment
23. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
offer
per stirpes
testate
discharge
24. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
implied warranty
blue sky laws
levy
lien
25. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).
SEC Rule 10b-5
community property
delegatee
assignor
26. 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.
international organization
incidental damages
estopped
general partner
27. A charge by a grand jury that a named person has committed a crime.
lease agreement
indictment
property
choice-of-language clause
28. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
negotiation
tenancy in common
arbitration clause
integrated contract
29. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.
right of reimbursement
articles of partnership
inter vivos trust
nonpossessory interest
30. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.
lessee
presentment warranties
spendthrift trust
check
31. 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.
minimum wage
correspondent bank
motion for a new trial
commercial impracticability
32. Goods that conform to contract specifications.
constructive eviction
sales contract
conforming goods
justiciable controversy
33. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.
presentment
tenancy by the entirety
formal contract
trade name
34. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.
co-surety
objective theory of contracts
will
guarantor
35. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.
business ethics
nominal damages
tenancy at sufferance
bailment
36. 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
proceeds
option contract
incidental damages
unconscionable contract or clause
37. A person on the board of directors who is also an officer of the corporation.
condition precedent
novation
inside director
whistleblowing
38. A state statute under which certain types of contracts must be in writing to be enforceable.
venture capital
business ethics
employment discrimination
Statute of Frauds
39. 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.
preferred stock
will substitutes
service mark
smart card
40. 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.
cyber mark
brief
undisclosed principal
exclusive distributorship
41. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.
franchisor
utilitarianism
emancipation
product liability
42. Law that pertains to a particular nation (as opposed to international law).
national law
security
arbitration
probable cause
43. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.
void contract
online dispute resolution (ODR)
life estate
domain name
44. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.
shelter principle
express contract
revocation
e-signature
45. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.
policy
writ of attachment
intermediary bank
frustration of purpose
46. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.
respondeat superior
firm offer
certification mark
tombstone ad
47. Prior conduct between the parties to a contract that establishes a common basis for their understanding.
embezzlement
peer-to-peer (P2P) networking
course of dealing
security
48. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
employment contract
copyright
inter vivos trust
mortgagor
49. Charging an illegal rate of interest.
investment company
condemnation
usury
collateral
50. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.
investment contract
articles of partnership
power of attorney
computer crime