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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. 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






2. 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.






3. 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.






4. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






5. One who owes an obligation to another.






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






7. Ownership rights in property - including the right to possess and control the property.






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






9. 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.






10. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






11. 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






12. An agreement by two or more persons to carry on - as co-owners - a business for profit.






13. 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






14. One to whom an obligation is owed.






15. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.






16. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






17. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






18. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






19. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






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






21. 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






22. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






23. 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






24. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






25. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






26. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






27. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






28. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






29. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






30. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






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






32. One to whom goods are entrusted by a bailor.






33. 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.






34. An action to carry into effect the directions in a court decree or judgment.






35. 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).






36. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






37. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.






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






39. A promise or commitment to perform or refrain from performing some specified act in the future.






40. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






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






42. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






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






44. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






45. A set limit on the amount of goods that can be imported.






46. A contract in which the terms of the agreement are stated in words - oral or written.






47. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






48. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






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






50. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.