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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. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.
motion for a directed verdict
insider trading
installment contract
floating lien
2. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.
tender
implied warranty of merchantability
anticipatory repudiation
cram-down provision
3. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.
tenancy at will
bilateral mistake
holographic will
corporation
4. A trust that is created by will and therefore does not take effect until the death of the testator.
testamentary trust
liquidated debt
articles of organization
free-writing prospectus
5. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
per capita
moral minimum
piercing the corporate veil
stock options
6. The goods and services that domestic firms sell to buyers located in other countries.
export
fiduciary
insurable interest
federal question
7. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.
digital cash
bilateral contract
parent-subsidiary merger
articles of organization
8. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.
federal question
default judgment
garnishment
takeover
9. Law that pertains to a particular nation (as opposed to international law).
duress
gift causa mortis
testator
national law
10. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
estate in property
lessor
target corporation
venue
11. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio
quasi contract
check
negotiable instrument
parent-subsidiary merger
12. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.
express contract
tenancy at will
cost-benefit analysis
replevin
13. 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.
liquidated debt
cure
penalty
nuncupative will
14. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar
default
act of state doctrine
alien corporation
destination contract
15. An implied promise by a landlord that rented residential premises are fit for human habitation
workout
cram-down provision
information
implied warranty of habitability
16. 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
conforming goods
fungible goods
order instrument
cram-down provision
17. A contract in which one party forfeits the right to pursue a legal claim against the other party.
free-writing prospectus
entrapment
prospectus
release
18. A contract that is formed electronically.
eviction
e-contract
collateral promise
contract
19. 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
bond indenture
joint tenancy
lien
negotiation
20. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.
employment at will
business ethics
devisee
pleadings
21. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.
security
usage of trade
counteroffer
federal question
22. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
burglary
stored-value card
confusion
partnership
23. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.
administrator
motion to dismiss
liquidated damages
interrogatories
24. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.
promise
lessee
bilateral mistake
negotiable instrument
25. 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
dominion
information
option contract
bilateral contract
26. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.
copyright
shrink-wrap agreement
conforming goods
certified check
27. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
comity
gift inter vivos
default
insurable interest
28. 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.
trademark
click-on agreement
dishonor
choice-of-language clause
29. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.
disclosed principal
limited liability limited partnership (LLLP)
creditors' composition agreement
mortgage
30. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
generally accepted auditing standards (GAAS)
secondary boycott
forgery
entrapment
31. Property resulting from intellectual - creative processes.
security interest
domestic corporation
bearer instrument
intellectual property
32. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.
junior lienholder
brief
incidental damages
venue
33. 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.
merger
peer-to-peer (P2P) networking
robbery
performance
34. A contract that by law requires a specific form - such as being executed under seal - for its validity.
executory contract
policy
formal contract
categorical imperative
35. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.
life estate
dumping
correspondent bank
blue sky laws
36. 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.
franchisor
shelter principle
I-9 verification
promissory note
37. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.
confusion
lessee
acceptor
inside director
38. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.
drawer
restitution
bond indenture
implied warranty of fitness for a particular purpose
39. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.
fee simple
cure
sovereign immunity
lien
40. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'
information
hacker
information return
insolvent
41. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.
holder
working papers
voidable contract
mortgagor
42. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.
promissory estoppel
litigation
unenforceable contract
franchise
43. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.
quitclaim deed
conveyance
self-defense
commercial impracticability
44. 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.
S corporation
retained earnings
proxy
assignment
45. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).
assignor
dissolution
felony
negotiation
46. 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
prima facie case
correspondent bank
estopped
breach of contract
47. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.
sole proprietorship
venture capital
sublease
sale on approval
48. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.
after-acquired property
legatee
sale
emancipation
49. The use of an asset that is not the subject of a loan to collateralize that loan.
mortgage
replevin
closed shop
cross-collateralization
50. 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.
investment contract
cost-benefit analysis
treaty
shipment contract