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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 tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






2. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






3. Any voluntary transfer of property made without consideration - past or present.






4. Having left a will at death.






5. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






6. A type of contract that arises when a promise is given in exchange for a return promise.






7. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.






8. 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.






9. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






10. 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






11. An order by a bank customer to his or her bank not to pay or certify a certain check.






12. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.






13. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






14. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






15. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






16. A gift of personal property by will (from the verb to bequeath).






17. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






18. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






19. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






20. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






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






22. 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.






23. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






24. 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.






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






26. 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.






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






28. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






29. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






30. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






31. 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.






32. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






33. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






34. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






35. 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.






36. A contract that has not as yet been fully performed.






37. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






38. A type of limited liability partnership owned by family members or fiduciaries of family members.






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






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






41. A corporation whose shareholders are limited to a small group of persons - often including only family members.






42. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






43. 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






44. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






45. A check - other than a certified check - that is presented for payment more than six months after its date.






46. A contract that by law requires a specific form - such as being executed under seal - for its validity.






47. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






48. 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






49. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






50. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.







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