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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 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.






2. Joint ownership.






3. 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.






4. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






5. The term used to designate a person who has an ownership interest in a limited liability company.






6. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






7. A designation in the United States for a corporation formed in another country but doing business in the United States.






8. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






9. 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.






10. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






11. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






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






13. A crime committed on the Internet.






14. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






15. The process of proving and validating a will and settling all matters pertaining to an estate.






16. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






17. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






18. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






19. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






20. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






21. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






22. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






23. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






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






25. A will written entirely in the signer's handwriting and usually not witnessed.






26. 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.






27. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






28. 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






29. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






30. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






31. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






32. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






33. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






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






35. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






36. Ownership rights in property - including the right to possess and control the property.






37. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






38. 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






39. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






40. A check - other than a certified check - that is presented for payment more than six months after its date.






41. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






42. 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






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






44. 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.






45. 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.






46. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






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






48. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






49. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).






50. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.