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






2. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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






4. The act of transferring to another all or part of one's rights arising under a contract.






5. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






6. 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






7. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






8. A contract that does not require a specified form or formality to be valid.






9. An assertion that something either will or will not happen in the future.






10. The creation of an absolute or unconditional right or power.






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






12. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






13. A person who makes a promise.






14. 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.






15. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






16. 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.






17. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






18. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






19. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






20. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






21. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






22. Having left a will at death.






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






24. Property resulting from intellectual - creative processes.






25. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






26. 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.






27. 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).






28. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






29. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






30. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






31. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






32. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.






33. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






34. 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






35. 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.






36. Procedurally - a defendant's response to the plaintiff's complaint.






37. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






38. A person on the board of directors who does not hold a management position at the corporation.






39. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






40. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






41. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






42. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






43. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






44. In a given state - a corporation that does business in the state without being incorporated therein.






45. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






46. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t






47. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






48. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






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






50. A corporation whose shareholders are limited to a small group of persons - often including only family members.