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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. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.
franchisor
cashier's check
winding up
takeover
2. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.
click-on agreement
levy
certified check
bailor
3. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.
reaffirmation agreement
notary public
family limited liability partnership (FLLP)
recording statutes
4. 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.
anticipatory repudiation
tender of delivery
promissory estoppel
business judgment rule
5. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be
lease
agency
summons
SEC Rule 10b-5
6. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.
tenancy in common
federal question
ratification
closed shop
7. 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.
confiscation
check
concurrent jurisdiction
forum-selection clause
8. One designated in a will to receive a gift of personal property.
bailment
promissory note
after-acquired property
legatee
9. The use of an asset that is not the subject of a loan to collateralize that loan.
cross-collateralization
stock
administrator
articles of partnership
10. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.
consequential damages
pleadings
exclusive distributorship
delegator
11. Joint ownership.
counterclaim
self-incrimination
workers' compensation laws
concurrent ownership
12. 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.
foreign exchange market
pass-through entity
consignment
piercing the corporate veil
13. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.
collateral
motion for a directed verdict
lessor
bounty payment
14. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'
will
nonpossessory interest
beyond a reasonable doubt
bond indenture
15. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.
breach of contract
license
purchase-money security interest (PMSI)
small claims court
16. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p
order for relief
preference
penalty
lessee
17. A trust that is created by will and therefore does not take effect until the death of the testator.
eminent domain
assignor
testamentary trust
independent contractor
18. A person in possession of an instrument payable to bearer or indorsed in blank.
market-share liability
complaint
bearer
expropriation
19. 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.
undisclosed principal
consignment
holding company
entrustment rule
20. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t
insurance
click-on agreement
valid contract
operating agreement
21. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab
generally accepted accounting principles (GAAP)
ultra vires
course of performance
voir dire
22. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.
cost-benefit analysis
summary jury trial (SJT)
order for relief
partnering agreement
23. A person on the board of directors who is also an officer of the corporation.
incidental damages
inside director
lost property
deed
24. The process of proving and validating a will and settling all matters pertaining to an estate.
exclusive distributorship
emancipation
probate
winding up
25. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.
writ of attachment
winding up
implied-in-fact contract
counterclaim
26. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.
gift
life estate
incidental damages
course of dealing
27. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.
general partner
codicil
proxy
browse-wrap terms
28. 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
incidental damages
performance
information return
co-surety
29. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.
diversity of citizenship
principle of rights
collateral promise
sale on approval
30. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.
blue laws
collateral
question of law
exclusionary rule
31. The process of resolving a dispute through the court system.
litigation
alternative dispute resolution (ADR)
closed shop
testamentary trust
32. In a sale of goods - the express designation of the goods provided for in the contract.
moral minimum
identification
defalcation
forum-selection clause
33. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o
dissolution
free-writing prospectus
condition
piercing the corporate veil
34. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.
offer
exclusive jurisdiction
consignment
course of performance
35. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.
quitclaim deed
certified check
shipment contract
covenant not to compete
36. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.
watered stock
collective mark
debtor in possession (DIP)
sole proprietorship
37. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
jurisdiction
lessor
Regulation E
constructive trust
38. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
mechanic's lien
forgery
dissolution
general partner
39. 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.
revocation
voir dire
traveler's check
unilateral contract
40. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.
destination contract
condition subsequent
check
universal defenses
41. A contract that by law requires a specific form - such as being executed under seal - for its validity.
legacy
dissociation
liquidation
formal contract
42. 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.
administrator
tangible property
lessee
act of state doctrine
43. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.
bequest
attachment
sublease
liquidated debt
44. A contract that has been completely performed by both parties.
administrator
executed contract
generally accepted auditing standards (GAAS)
deficiency judgment
45. Barred - impeded - or precluded.
correspondent bank
pledge
estopped
outside director
46. A public official authorized to attest to the authenticity of signatures.
notary public
administrator
profit
double jeopardy
47. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.
forum-selection clause
accord and satisfaction
S corporation
diversity of citizenship
48. The image and overall appearance of a product
insolvent
mortgage
adhesion contract
trade dress
49. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.
draft
expropriation
holder
consideration
50. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.
equal dignity rule
justiciable controversy
blue sky laws
gift