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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. 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.
business necessity
proxy
general partner
periodic tenancy
2. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
extension clause
stored-value card
rescission
floating lien
3. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.
felony
property
free-writing prospectus
agency
4. 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.
cost-benefit analysis
equal dignity rule
tenancy in common
identification
5. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.
e-evidence
money laundering
articles of partnership
per capita
6. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.
security
fee simple absolute
partnering agreement
letter of credit
7. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio
parent-subsidiary merger
condition precedent
felony
negotiable instrument
8. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.
scienter
information
inside director
investment company
9. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib
prenuptial agreement
lease
articles of organization
limited partner
10. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.
securities
acceptor
information return
sale or return
11. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina
novation
target corporation
smart card
petition in bankruptcy
12. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.
confiscation
legatee
duress
mortgagee
13. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.
drawee
disparate-impact discrimination
alternative dispute resolution (ADR)
moral minimum
14. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.
replevin
universal defenses
fixture
S corporation
15. 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.
eminent domain
overdraft
dissolution
actus reus
16. A valid contract rendered unenforceable by some statute or law.
unenforceable contract
choice-of-language clause
writ of attachment
tangible employment action
17. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.
liquidation
specific performance
unilateral mistake
cost-benefit analysis
18. One for whose benefit a promise is made in a contract but who is not a party to the contract.
forgery
workers' compensation laws
forbearance
third party beneficiary
19. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.
tombstone ad
indorsement
tender
ethics
20. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.
reaffirmation agreement
general partner
offer
incidental beneficiary
21. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.
acceleration clause
valid contract
holding company
promisor
22. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil
traveler's check
implied warranty of fitness for a particular purpose
maker
cyber mark
23. The act of stealing another's identifying information
concurrent ownership
mens rea
identity theft
revocation
24. The number of members of a decision-making body that must be present before business may be transacted.
insurable interest
express warranty
inside director
quorum
25. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.
service mark
e-evidence
per capita
right of reimbursement
26. 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.
closed shop
destination contract
nominal damages
payee
27. 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.
computer crime
cyberterrorist
delegation of duties
motion for judgment n.o.v.
28. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.
white-collar crime
consolidation
testamentary trust
tippee
29. Property that is acquired by the debtor after the execution of a security agreement.
stale check
information
prenuptial agreement
after-acquired property
30. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
standing to sue
information
arson
good faith purchaser
31. In a given state - a corporation that does business in the state without being incorporated therein.
foreign corporation
floating lien
arbitration
emancipation
32. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.
justiciable controversy
holder
identity theft
discharge
33. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract
red herring prospectus
unreasonably dangerous product
trade dress
incidental damages
34. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.
counteroffer
dissolution
winding up
stop-payment order
35. A person to whom an instrument is made payable.
discovery
payee
pledge
Totten trust
36. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio
check
firm offer
minimum wage
floating lien
37. A person who makes a promise.
dissociation
embezzlement
promisor
assignee
38. A contract in which the terms of the agreement are stated in words - oral or written.
dumping
bailee
express contract
business judgment rule
39. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.
personal defenses
misdemeanor
disparate-impact discrimination
fee simple
40. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t
business necessity
mens rea
commercial impracticability
negotiation
41. 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
protected class
legatee
surety
prima facie case
42. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.
winding up
due diligence
offeror
alien corporation
43. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
arbitration clause
union shop
informal contract
promisee
44. 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.
record
international law
parol evidence rule
takeover
45. 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.
judicial review
debtor in possession (DIP)
partially disclosed principal
smart card
46. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi
stock certificate
utilitarianism
lease agreement
promise
47. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.
normal trade relations (NTR) status
usage of trade
implied-in-fact contract
unilateral mistake
48. 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
I-551 Alien Registration Receipt
operating agreement
member
apparent authority
49. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).
ultra vires
question of fact
cram-down provision
preferred creditor
50. 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.
right of reimbursement
disparate-impact discrimination
comity
per capita