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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. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'
liquidated damages
bearer instrument
consequential damages
offeror
2. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.
preference
bilateral mistake
alienation
bond
3. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.
presentment
deficiency judgment
tender
motion for a directed verdict
4. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.
5. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.
writ of execution
intermediary bank
partnering agreement
writ of certiorari
6. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
spendthrift trust
discharge
preferred creditor
insider trading
7. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan
replevin
corporation
unreasonably dangerous product
smart card
8. A promise or commitment to perform or refrain from performing some specified act in the future.
pledge
offer
civil law system
payee
9. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
levy
independent contractor
nominal damages
agency
10. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.
motion for a new trial
trade dress
delegation of duties
proceeds
11. The basic document filed with a designated state official by which a limited partnership is formed.
constructive eviction
general partner
motion for judgment on the pleadings
certificate of limited partnership
12. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
consent
legatee
watered stock
check
13. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.
void contract
lessee
bearer instrument
franchisee
14. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.
deed
fictitious payee
presentment warranties
bounty payment
15. Drawee that is legally obligated to pay an instrument when it is presented later for payment.
private equity capital
motion to dismiss
acceptor
assignment
16. A party to whom the rights under a contract are transferred - or assigned.
assignee
check
debtor in possession (DIP)
rule of four
17. The first bank to receive a check for payment.
executed contract
shipment contract
arbitration clause
depositary bank
18. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop
estate in property
testate
bailee
adhesion contract
19. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.
identification
outside director
mirror image rule
seasonably
20. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
alien corporation
arbitration
dissolution
stock warrant
21. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
burglary
cybersquatting
deposition
consequential damages
22. 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
bylaws
commercial impracticability
certification mark
rule of four
23. Joint ownership.
sovereign immunity
deposition
interrogatories
concurrent ownership
24. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical
e-agent
payee
e-signature
principle of rights
25. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.
disaffirmance
e-signature
forum-selection clause
appraisal right
26. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.
breach of contract
business necessity
consolidation
agency
27. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit
money laundering
normal trade relations (NTR) status
defalcation
attachment
28. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.
tenancy by the entirety
performance
forum-selection clause
negotiable instrument
29. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.
limited liability company (LLC)
due diligence
deposition
e-evidence
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.
Totten trust
insider trading
information
implied warranty of fitness for a particular purpose
31. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.
revocation
mutual fund
impossibility of performance
penalty
32. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
certification mark
search warrant
signature
lessor
33. 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
shipment contract
plea bargaining
generally accepted accounting principles (GAAP)
34. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.
guarantor
release
union shop
pleadings
35. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.
confiscation
contract
covenant not to compete
guarantor
36. Any voluntary transfer of property made without consideration - past or present.
voir dire
bona fide occupational qualification (BFOQ)
gift
informal contract
37. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
installment contract
franchisee
disclosed principal
business ethics
38. 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.
e-agent
policy
risk management
objective theory of contracts
39. The act of stealing another's identifying information
identity theft
lessee
minimum wage
bailment
40. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.
corporate governance
lien
articles of incorporation
inside director
41. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.
cross-collateralization
domain name
attachment
union shop
42. 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
cyberterrorist
offeree
implied warranty of merchantability
operating agreement
43. In the context of real property - an interest in land that does not include any right to possess the property.
power of attorney
clearinghouse
working papers
nonpossessory interest
44. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.
offeror
legacy
license
testate
45. An implied promise by a landlord that rented residential premises are fit for human habitation
insider trading
implied warranty of habitability
undisclosed principal
holder in due course (HDC)
46. 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
employment contract
unilateral contract
stop-payment order
47. 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.
quota
stock warrant
replevin
novation
48. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.
international law
usury
notary public
protected class
49. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
bailee
federal question
stock options
promisee
50. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.
generally accepted auditing standards (GAAS)
e-contract
product liability
duress