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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. 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.






2. 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.






3. 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






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






5. 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.






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






7. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






8. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






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






10. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






11. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






12. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






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






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






15. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






16. A written - temporary insurance policy.






17. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






18. 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.






19. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






20. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






21. The passing of title to property from the seller to the buyer for a price.






22. 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.






23. 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






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

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25. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






26. One designated in a will to receive a gift of real property.






27. The geographic district in which a legal action is tried and from which the jury is selected.






28. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






29. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






30. Information or processes that give a business an advantage over competitors that do not know the information or processes.






31. 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






32. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






33. 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.






34. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






35. 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.






36. An agreement that creates or provides for a security interest between the debtor and a secured party.






37. A person who makes a promise.






38. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






39. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






40. The act of refraining from an action that one has a legal right to undertake.






41. 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






42. A contract that is formed electronically.






43. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.






44. 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.






45. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






46. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






47. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






48. 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.






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






50. A network that can be used by persons located (distributed) around the country or the globe to share computer files.