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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 sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.
replevin
liquidation
indorsement
acceptor
2. A contract between the issuer of a bond and the bondholder.
promissory note
tenancy in common
arson
bond indenture
3. A contract that by law requires a specific form - such as being executed under seal - for its validity.
appraisal right
personal defenses
formal contract
automatic stay
4. Property with which the owner has involuntarily parted and then cannot find or recover.
lost property
equal dignity rule
easement
spendthrift trust
5. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody
estate in property
summary jury trial (SJT)
order for relief
categorical imperative
6. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.
petty offense
nominal damages
ultra vires
predominant-factor test
7. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.
robbery
actus reus
charitable trust
inter vivos trust
8. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ
forum-selection clause
market-share liability
spendthrift trust
peer-to-peer (P2P) networking
9. In a given state - a corporation that does business in - and is organized under the law of - that state.
risk
condition subsequent
domestic corporation
default judgment
10. A set of policies or procedures affecting the way a corporation is directed or controlled.
tangible employment action
presentment
corporate governance
general partner
11. 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.'
beyond a reasonable doubt
notary public
promissory note
conveyance
12. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.
fiduciary
bailment
scienter
award
13. 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.
shelter principle
reply
force majeure clause
stock warrant
14. A gift of personal property by will (from the verb to bequeath).
bequest
unenforceable contract
e-evidence
winding up
15. A contract having no legal force or binding effect.
tangible property
motion for summary judgment
normal trade relations (NTR) status
void contract
16. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'
warranty deed
hacker
limited liability partnership (LLP)
option contract
17. An action to carry into effect the directions in a court decree or judgment.
long arm statute
common stock
summons
execution
18. The failure - without legal excuse - of a promisor to perform the obligations of a contract.
order for relief
dumping
breach of contract
distributed network
19. 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.
venue
fixed-term tenancy
equal dignity rule
commingle
20. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.
due diligence
wrongful discharge
mitigation of damages
binder
21. 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.
shipment contract
presentment
consent
pleadings
22. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.
articles of incorporation
secured transaction
policy
tariff
23. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].
prima facie case
cure
double jeopardy
incidental damages
24. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t
browse-wrap terms
U.S. trustee
long arm statute
constructive eviction
25. 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
investment contract
alienation
liquidated debt
26. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
replevin
default
principle of rights
unilateral mistake
27. 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.
release
pass-through entity
secured transaction
mediation
28. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.
course of performance
red herring prospectus
alternative dispute resolution (ADR)
forum-selection clause
29. A type of limited liability partnership owned by family members or fiduciaries of family members.
workers' compensation laws
family limited liability partnership (FLLP)
shipment contract
universal defenses
30. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.
tenancy by the entirety
motion for judgment n.o.v.
abandoned property
necessaries
31. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
information return
taking
consent
co-surety
32. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.
preferred stock
stored-value card
collecting bank
malpractice
33. Prior conduct between the parties to a contract that establishes a common basis for their understanding.
course of dealing
periodic tenancy
disclosed principal
negotiable instrument
34. 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
discovery
acceptor
Totten trust
deficiency judgment
35. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.
limited liability company (LLC)
whistleblowing
I-9 verification
debtor in possession (DIP)
36. 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.
browse-wrap terms
drawee
motion for summary judgment
anticipatory repudiation
37. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.
private equity capital
extension clause
shrink-wrap agreement
record
38. 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.
special warranty deed
liquidated debt
tenancy in common
requirements contract
39. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.
shelter principle
writ of attachment
right-to-work law
objective theory of contracts
40. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.
guarantor
red herring prospectus
whistleblowing
nonpossessory interest
41. 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.
security agreement
backdating
bounty payment
e-agent
42. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -
sexual harassment
express warranty
disparate-treatment discrimination
adverse possession
43. Barred - impeded - or precluded.
estopped
expropriation
mens rea
self-defense
44. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.
intestacy laws
prospectus
holographic will
financing statement
45. Charging an illegal rate of interest.
delegator
usury
commercial impracticability
preferred stock
46. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.
disparate-treatment discrimination
void contract
risk
will
47. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.
right of subrogation
e-money
insider trading
piercing the corporate veil
48. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
implied warranty
contractual capacity
express contract
tender offer
49. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.
accession
smart card
market-share liability
breach of contract
50. A network that can be used by persons located (distributed) around the country or the globe to share computer files.
payee
distributed network
intangible property
delegation of duties