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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 certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






2. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






3. 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






4. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






5. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






6. 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.






7. A type of limited liability partnership owned by family members or fiduciaries of family members.






8. An estate in realty held by a tenant under a lease. In every leasehold estate - the tenant has a qualified right to possess and/or use the land.






9. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






10. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






11. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






12. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






13. 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






14. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






15. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






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






17. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






18. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






19. 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.






20. 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.






21. 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.






22. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






23. Any voluntary transfer of property made without consideration - past or present.






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






25. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






26. One who makes and executes a will.






27. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






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






29. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






30. An order by a bank customer to his or her bank not to pay or certify a certain check.






31. 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.






32. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






33. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






34. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






35. 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.






36. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.






37. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






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






39. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






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






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






42. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






43. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






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






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






46. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






47. A person in possession of an instrument payable to bearer or indorsed in blank.






48. One to whom an obligation is owed.






49. Land and everything attached to it - such as trees and buildings.






50. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.