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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. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and
attachment
mailbox rule
formal contract
purchase-money security interest (PMSI)
2. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.
watered stock
partnership
motion for a directed verdict
certificate of limited partnership
3. An implied promise by a landlord that rented residential premises are fit for human habitation
I-551 Alien Registration Receipt
implied warranty of habitability
choice-of-law clause
acceleration clause
4. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.
fungible goods
mediation
testator
charitable trust
5. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).
frustration of purpose
money laundering
cashier's check
felony
6. In the context of real property - an interest in land that does not include any right to possess the property.
nonpossessory interest
articles of partnership
U.S. trustee
mortgage
7. The idea that corporations can and should act ethically and be accountable to society for their actions.
corporate social responsibility
collecting bank
creditors' composition agreement
express contract
8. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.
business ethics
choice-of-language clause
obligor
insider trading
9. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.
condemnation
bona fide occupational qualification (BFOQ)
clearinghouse
workout
10. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
lessor
tangible property
execution
employment at will
11. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.
proceeds
preferred stock
spendthrift trust
destination contract
12. 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.
express warranty
unconscionable contract or clause
condition precedent
market-share liability
13. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi
arbitration clause
workers' compensation laws
liquidated debt
utilitarianism
14. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.
continuation statement
promissory estoppel
adverse possession
recording statutes
15. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.
unreasonably dangerous product
lost property
right of contribution
tangible employment action
16. 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.
past consideration
justiciable controversy
deposition
condition precedent
17. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.
mailbox rule
equal dignity rule
mediation
choice-of-language clause
18. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f
apparent authority
option contract
accord and satisfaction
sale or return
19. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.
forbearance
automatic stay
dissociation
online dispute resolution (ODR)
20. A contract in which one party forfeits the right to pursue a legal claim against the other party.
premium
objective theory of contracts
release
usury
21. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.
predominant-factor test
bailment
moral minimum
offer
22. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.
course of dealing
bylaws
intellectual property
default judgment
23. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil
stock options
maker
per stirpes
implied warranty of fitness for a particular purpose
24. 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.
acceptance
acceptance
policy
probate
25. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and
preferred stock
attachment
interrogatories
fee simple absolute
26. 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.
confiscation
e-agent
business judgment rule
tender offer
27. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.
e-agent
Totten trust
diversity of citizenship
larceny
28. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.
cyberterrorist
promisee
notary public
e-signature
29. Generally - the value given in return for a promise; involves two elements
consideration
voir dire
tariff
constructive trust
30. 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.
domain name
international organization
vesting
leasehold estate
31. The goods and services that domestic firms sell to buyers located in other countries.
export
intended beneficiary
burglary
commercial impracticability
32. The process of taking private property for public use through the government's power of eminent domain.
motion for a new trial
incidental damages
consent
condemnation
33. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.
check
vicarious liability
incidental beneficiary
counteroffer
34. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.
smart card
copyright
gift causa mortis
bailor
35. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.
bond indenture
usage of trade
partnering agreement
partnership
36. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.
levy
license
third party beneficiary
white-collar crime
37. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.
ethical reasoning
attachment
winding up
voir dire
38. The authority of a court to hear and decide a specific case.
jurisdiction
categorical imperative
course of performance
liquidated damages
39. One to whom an obligation is owed.
constructive trust
rule of four
obligee
distributed network
40. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.
cyber crime
double jeopardy
inter vivos trust
summons
41. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.
embezzlement
articles of incorporation
ultra vires
secondary boycott
42. The use of an asset that is not the subject of a loan to collateralize that loan.
attachment
contractual capacity
cross-collateralization
embezzlement
43. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'
private equity capital
estopped
signature
holographic will
44. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately
discharge
estate in property
summary jury trial (SJT)
constructive trust
45. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.
bounty payment
collecting bank
co-surety
bankruptcy court
46. Land and everything attached to it - such as trees and buildings.
premium
prima facie case
real property
bearer instrument
47. A party to whom the rights under a contract are transferred - or assigned.
litigation
mortgagee
fungible goods
assignee
48. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.
stock
disclosed principal
backdating
presentment warranties
49. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).
e-money
holder
tender of delivery
blue sky laws
50. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.
clearinghouse
right of subrogation
undisclosed principal
transfer warranties