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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. The power of a government to take land from private citizens for public use on the payment of just compensation.






2. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






3. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






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






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






6. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






7. Procedurally - a plaintiff's response to a defendant's answer.






8. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






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






10. 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






11. A contract that is formed electronically.






12. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






13. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






14. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.






15. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






16. 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.






17. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






18. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






19. The relationship that exists between the promisor and the promisee of a contract.






20. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






21. The first bank to receive a check for payment.






22. The process of resolving a dispute through the court system.






23. One to whom goods are entrusted by a bailor.






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






25. 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






26. 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.






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






28. 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






29. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






30. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.






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






32. 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.






33. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






34. 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






35. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






36. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






37. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.






38. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






39. 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).






40. 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






41. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






42. 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.






43. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






44. 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.






45. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






46. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






47. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






48. 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






49. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






50. The act of stealing another's identifying information