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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. 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.






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.






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






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.






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.






6. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






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






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






9. A contract that does not require a specified form or formality to be valid.






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






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.






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.






14. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






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.






16. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






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






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






19. One designated in a will to receive a gift of personal property.






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






21. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






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.






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






24. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






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






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.






27. A charge by a grand jury that a named person has committed a crime.






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.






29. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






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.






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.






32. Goods that conform to contract specifications.






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.






34. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






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.






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






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






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






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.






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.






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






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






43. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






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.






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.






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.






47. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






48. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






49. Charging an illegal rate of interest.






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.