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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. A contract that results when an offer can be accepted only by the offeree's performance.






2. 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






3. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






4. 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.






5. A legally recognized authority that can certify the validity of digital signatures.






6. 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.






7. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






8. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






9. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






10. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






11. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






12. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






13. One designated in a will to receive a gift of real property.






14. A gift of personal property under a will.






15. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).






16. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






17. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv






18. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






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.






20. 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.






21. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






22. Property with which the owner has voluntarily parted and then cannot find or recover.






23. 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.






24. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






25. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






26. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






27. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






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






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






30. The geographic district in which a legal action is tried and from which the jury is selected.






31. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






32. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).






33. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






34. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).






35. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






36. A crime






37. A landlord's act of depriving a tenant of possession of the leased premises.






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






39. 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






40. A person on the board of directors who is also an officer of the corporation.






41. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






42. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






43. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






44. The passing of title to property from the seller to the buyer for a price.






45. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






46. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






47. 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.






48. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






49. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






50. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events







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