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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. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.
debtor
power of attorney
exclusionary rule
intended beneficiary
2. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.
consideration
jurisdiction
entrapment
voidable contract
3. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.
stop-payment order
underwriter
motion for judgment on the pleadings
bounty payment
4. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or
unenforceable contract
revocation
constructive delivery
constructive eviction
5. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.
letter of credit
actus reus
destination contract
jurisdiction
6. 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.
will substitutes
robbery
security
acceptance
7. Jurisdiction that exists when a case can be heard only in a particular court or type of court.
probate court
exclusive jurisdiction
gift causa mortis
writ of attachment
8. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
bailor
federal question
entrapment
levy
9. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.
winding up
duress
probate court
insurable interest
10. A party to whom contractual obligations are transferred - or delegated.
usury
codicil
unreasonably dangerous product
delegatee
11. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th
penalty
workout
assignment
conforming goods
12. 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.
grand jury
inside director
void contract
will substitutes
13. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.
power of attorney
right of contribution
motion for a new trial
promissory note
14. The process of taking private property for public use through the government's power of eminent domain.
bearer instrument
counterclaim
certification mark
condemnation
15. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ
preferred stock
accord and satisfaction
arbitration
installment contract
16. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.
electronic fund transfer (EFT)
fiduciary
venture capital
protected class
17. In a sale of goods - the express designation of the goods provided for in the contract.
frustration of purpose
felony
identification
letter of credit
18. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise
venue
standing to sue
money laundering
bond indenture
19. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.
motion for judgment n.o.v.
corporation
quitclaim deed
robbery
20. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.
pleadings
installment contract
limited liability partnership (LLP)
performance
21. A valid contract rendered unenforceable by some statute or law.
inter vivos trust
prenuptial agreement
preferred creditor
unenforceable contract
22. 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.
suretyship
business necessity
security agreement
negotiable instrument
23. An employer's termination of an employee's employment in violation of the law.
commingle
inside director
wrongful discharge
online dispute resolution (ODR)
24. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.
treaty
closed shop
distribution agreement
tenancy at sufferance
25. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.
due diligence
release
performance
mitigation of damages
26. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
negotiation
consent
tenancy at sufferance
legacy
27. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.
impossibility of performance
forbearance
condition precedent
larceny
28. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p
legatee
red herring prospectus
franchise
bequest
29. A contract that by law requires a specific form - such as being executed under seal - for its validity.
property
preference
incidental damages
formal contract
30. A contract that is formed electronically.
tenancy at sufferance
risk management
document of title
e-contract
31. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'
Totten trust
mortgagee
order instrument
bequest
32. A crime committed on the Internet.
diversity of citizenship
binder
implied warranty of fitness for a particular purpose
cyber crime
33. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).
e-money
negotiation
good faith purchaser
concurrent ownership
34. 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.
negotiation
e-agent
expropriation
proceeds
35. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.
estopped
search warrant
business judgment rule
suretyship
36. The goods and services that domestic firms sell to buyers located in other countries.
insurable interest
export
obligee
normal trade relations (NTR) status
37. In the context of real property - an interest in land that does not include any right to possess the property.
nonpossessory interest
member
choice-of-law clause
exclusionary rule
38. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.
output contract
patent
merchant
formal contract
39. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.
seniority system
secured transaction
I-9 verification
affirmative action
40. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain
holder in due course (HDC)
estate in property
preemptive rights
drawer
41. A state law providing that employees may not be required to join a union as a condition of retaining employment.
right-to-work law
business judgment rule
unenforceable contract
assignment
42. 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.
necessaries
sales contract
shelter principle
warranty deed
43. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h
self-incrimination
trade name
operating agreement
license
44. A writ from a higher court asking the lower court for the record of a case.
writ of certiorari
maker
acceptor
forgery
45. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.
emancipation
whistleblowing
anticipatory repudiation
mailbox rule
46. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.
insider trading
testate
community property
profit
47. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.
tangible employment action
actus reus
union shop
vesting
48. A tax on imported goods.
e-signature
purchase-money security interest (PMSI)
defalcation
tariff
49. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].
bond indenture
will
cure
tombstone ad
50. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.
power of attorney
agreement
franchisee
corporation