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Business Law Fundamentals

Subjects : law, business-law
  • Answer 50 questions in 15 minutes.
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  • 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. Property resulting from intellectual - creative processes.

2. 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.

3. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.

4. A writ from a higher court asking the lower court for the record of a case.

5. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar

6. Barred - impeded - or precluded.

7. The number of members of a decision-making body that must be present before business may be transacted.

8. 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

9. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.

10. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.

11. A case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a case in which the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence to dispr

12. A written - temporary insurance policy.

13. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.

14. A designation in the United States for a corporation formed in another country but doing business in the United States.

15. 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.

16. The testimony of a party to a lawsuit or a witness taken under oath before a trial.

17. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.

18. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.

19. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.

20. Any bank handling an item for collection - except the payor bank.

21. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.

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

23. Property with which the owner has voluntarily parted - with no intention of recovering it.

24. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins

25. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).

26. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.

27. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued

28. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.

29. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the

30. A worldwide system in which foreign currencies are bought and sold.

31. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.

32. 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.

33. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.

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

35. 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.

36. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.

37. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.

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

39. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.

40. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.

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

42. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.

43. 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.

44. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.

45. A gift of personal property by will (from the verb to bequeath).

46. 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.

47. A person in possession of an instrument payable to bearer or indorsed in blank.

48. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.

49. 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.

50. A contract that is formed electronically.