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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 special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






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






3. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






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






5. 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






6. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






7. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






8. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






9. Any interest in personal property or fixtures that secures payment or performance of an obligation.






10. 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.






11. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






12. A state statute under which certain types of contracts must be in writing to be enforceable.






13. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






14. 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.






15. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






16. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






17. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






18. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






19. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






20. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






21. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






22. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






23. A person appointed by a testator in a will to see that her or his will is administered appropriately.






24. A state law providing that employees may not be required to join a union as a condition of retaining employment.






25. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






26. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






27. 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






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






29. 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.






30. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






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






32. A provision in a contract stipulating that certain unforeseen events






33. A contract that is formed electronically.






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






35. The basic document filed with a designated state official by which a limited partnership is formed.






36. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






37. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






38. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






39. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






40. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






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






42. A public official authorized to attest to the authenticity of signatures.






43. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






44. One who entrusts goods to a bailee.






45. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






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






47. 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






48. An action to carry into effect the directions in a court decree or judgment.






49. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






50. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri