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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 process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






2. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






3. 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.






4. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






5. 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






6. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d






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






8. 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.






9. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






10. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






11. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






12. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






13. The use of an asset that is not the subject of a loan to collateralize that loan.






14. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






15. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






16. 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.






17. 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






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






19. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






20. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.






21. 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.






22. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






23. 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






24. The process of taking private property for public use through the government's power of eminent domain.






25. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.






26. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






27. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






28. 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.






29. The act of accepting and giving legal force to an obligation that previously was not enforceable.






30. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






31. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






32. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






33. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






34. In a sale of goods - the express designation of the goods provided for in the contract.






35. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






36. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






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






38. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






39. The act of stealing another's identifying information






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






41. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






42. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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43. 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.






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






45. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






46. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






47. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






48. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






49. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






50. 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.