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






2. 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.






3. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






4. The document filed with a designated state official by which a limited liability company is formed.






5. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






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






7. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






8. The purchase or sale of securities on the basis of information that has not been made available to the public.






9. 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.






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






11. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






12. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.






13. 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.






14. 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.






15. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






16. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






17. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






18. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






19. 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






20. 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.






21. 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.






22. 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.






23. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






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






25. An assertion that something either will or will not happen in the future.






26. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






27. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






28. 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.






29. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






30. 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.






31. A contract between an employer and an employee in which the terms and conditions of employment are stated.






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.






33. 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.






34. The authority of a court to hear and decide a specific case.






35. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






36. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






37. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






38. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.






39. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






40. 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.






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






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






43. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






44. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






45. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






46. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






47. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






48. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






49. 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.






50. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






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