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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. The failure - without legal excuse - of a promisor to perform the obligations of a contract.
mortgagor
business judgment rule
breach of contract
identification
2. The process of resolving a dispute through the court system.
tariff
ultra vires
litigation
intangible property
3. In a given state - a corporation that does business in the state without being incorporated therein.
diversity of citizenship
property
foreign corporation
exclusionary rule
4. 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).
Regulation E
question of fact
fungible goods
implied warranty of merchantability
5. 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.
treaty
document of title
sole proprietorship
negotiation
6. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.
standing to sue
premium
personal defenses
exclusive jurisdiction
7. 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.
proxy
commercial impracticability
suretyship
arbitration
8. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i
jurisdiction
firm offer
profit
incidental beneficiary
9. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.
Statute of Frauds
I-9 verification
commercial impracticability
fee simple absolute
10. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
lien
forgery
outside director
holographic will
11. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.
employment contract
pass-through entity
negotiable instrument
dissolution
12. The creation of an absolute or unconditional right or power.
federal question
condition
vesting
novation
13. Goods that conform to contract specifications.
sovereign immunity
conforming goods
self-incrimination
check
14. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.
parol evidence rule
order instrument
probate court
counteroffer
15. 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.
distributed network
parol evidence rule
seniority system
cram-down provision
16. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.
cybernotary
concurrent jurisdiction
ultra vires
merchant
17. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.
deficiency judgment
fee simple absolute
operating agreement
peer-to-peer (P2P) networking
18. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.
unilateral contract
legacy
sales contract
tangible property
19. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted
limited partnership
transfer warranties
objective theory of contracts
malpractice
20. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.
general partner
articles of organization
articles of partnership
constructive delivery
21. The act of transferring to another all or part of one's rights arising under a contract.
assignment
cease-and-desist order
fiduciary
prima facie case
22. 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
diversity of citizenship
attachment
tangible property
distribution agreement
23. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.
conveyance
secured party
promisor
condemnation
24. 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
export
domestic corporation
parent-subsidiary merger
acceptance
25. A prediction concerning potential loss based on known and unknown factors.
deed
preference
risk
self-defense
26. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment
objective theory of contracts
easement
duress
crime
27. A person on the board of directors who does not hold a management position at the corporation.
promissory estoppel
quasi contract
working papers
outside director
28. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen
financing statement
motion for judgment n.o.v.
preferred creditor
ratification
29. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
information
partnership
extension clause
bilateral mistake
30. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.
mislaid property
diversity of citizenship
risk management
confiscation
31. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.
right of subrogation
devisee
expropriation
act of state doctrine
32. 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.
beyond a reasonable doubt
undisclosed principal
indorsement
protected class
33. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.
acceptance
utilitarianism
e-contract
motion for a new trial
34. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
stock options
restitution
ethics
cease-and-desist order
35. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.
delegator
trade name
discovery
sovereign immunity
36. An implied promise by a landlord that rented residential premises are fit for human habitation
fee simple absolute
insurance
implied warranty of habitability
bankruptcy court
37. 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.
voir dire
appraisal right
defalcation
insider trading
38. 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
Statute of Frauds
joint and several liability
tombstone ad
securities
39. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.
bond
deficiency judgment
limited liability company (LLC)
prima facie case
40. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.
risk
double jeopardy
articles of incorporation
drawee
41. 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
ethical reasoning
limited liability limited partnership (LLLP)
premium
destination contract
42. The power of a government to take land from private citizens for public use on the payment of just compensation.
self-defense
option contract
question of law
eminent domain
43. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.
e-agent
tombstone ad
surety
tender
44. One to whom goods are entrusted by a bailor.
shipment contract
bankruptcy court
takeover
bailee
45. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.
judicial review
certificate of deposit (CD)
question of fact
draft
46. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
comity
standing to sue
merchant
exclusionary rule
47. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.
secondary boycott
dissolution
retained earnings
mortgage
48. 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.
tenancy by the entirety
secured transaction
franchisor
condition
49. 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
motion for a directed verdict
information return
payee
motion to dismiss
50. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.
blue laws
respondeat superior
trust
lessee