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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. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.






2. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






3. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






4. 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.






5. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






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






7. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






8. A contract between an employer and an employee in which the terms and conditions of employment are stated.






9. 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






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






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






12. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






13. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






14. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






15. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






16. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






17. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






18. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






19. 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






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






21. A prediction concerning potential loss based on known and unknown factors.






22. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






23. 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.






24. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






25. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






26. 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.






27. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






28. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






29. In a given state - a corporation that does business in the state without being incorporated therein.






30. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






31. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






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






33. A corporation whose shareholders are limited to a small group of persons - often including only family members.






34. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






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






36. 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.






37. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






38. A contract having no legal force or binding effect.






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






40. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






41. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






42. The document filed with a designated state official by which a limited liability company is formed.






43. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






44. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






45. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






46. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






47. A person who makes a promise.






48. A person to whom a promise is made.






49. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






50. 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.