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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. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
fixed-term tenancy
past consideration
robbery
inter vivos trust
2. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab
breach of contract
discharge
void contract
voir dire
3. 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
working papers
surety
workout
secondary boycott
4. 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.
private equity capital
articles of incorporation
securities
question of law
5. The number of members of a decision-making body that must be present before business may be transacted.
quorum
computer crime
objective theory of contracts
revocation
6. Charging an illegal rate of interest.
insolvent
usury
objective theory of contracts
bailment
7. 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.
bailor
I-551 Alien Registration Receipt
quitclaim deed
nonpossessory interest
8. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.
collective mark
actus reus
mailbox rule
tenancy at will
9. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.
tangible property
actus reus
revocation
hot-cargo agreement
10. A contract between an employer and an employee in which the terms and conditions of employment are stated.
operating agreement
employment contract
acceptance
international organization
11. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.
indorsement
e-signature
diversity of citizenship
forum-selection clause
12. A prediction concerning potential loss based on known and unknown factors.
duress
risk
close corporation
rescission
13. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
smart card
promissory estoppel
performance
letter of credit
14. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
limited liability partnership (LLP)
leasehold estate
restitution
lessor
15. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
intended beneficiary
e-money
employment at will
cyberterrorist
16. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.
legacy
installment contract
actus reus
constructive delivery
17. A contract in which the terms of the agreement are stated in words - oral or written.
taking
express contract
civil law system
lease agreement
18. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a
standing to sue
common stock
specific performance
rule of four
19. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment
crime
fungible goods
integrated contract
double jeopardy
20. 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.
special warranty deed
consequential damages
franchisee
penalty
21. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
order instrument
blue sky laws
implied warranty
brief
22. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.
patent
secured party
secured transaction
unenforceable contract
23. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.
sales contract
chattel
adhesion contract
alternative dispute resolution (ADR)
24. 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
summary jury trial (SJT)
mediation
offeror
collecting bank
25. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).
agency
corporate governance
holding company
trade dress
26. 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.
stock certificate
insider trading
continuation statement
motion for a directed verdict
27. 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
lien
negotiation
smart card
power of attorney
28. 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.
corporate governance
generally accepted auditing standards (GAAS)
lien
e-agent
29. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'
partially disclosed principal
award
e-signature
past consideration
30. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
requirements contract
default
property
unreasonably dangerous product
31. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.
cybersquatting
double jeopardy
usage of trade
summons
32. 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.
hot-cargo agreement
protected class
partnering agreement
preference
33. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.
grand jury
franchisor
question of fact
discovery
34. A party to whom the rights under a contract are transferred - or assigned.
assignee
private equity capital
entrustment rule
motion for a new trial
35. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.
question of law
license
trade dress
standing to sue
36. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.
exclusive distributorship
cybernotary
product liability
preferred stock
37. 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.
workout
certification mark
periodic tenancy
privity of contract
38. 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.
litigation
mirror image rule
release
smart card
39. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro
constructive trust
fixed-term tenancy
covenant not to compete
legacy
40. A person to whom a promise is made.
mortgage
national law
act of state doctrine
promisee
41. A person who makes an offer.
offeror
disaffirmance
continuation statement
dumping
42. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ
will
close corporation
policy
accord and satisfaction
43. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.
nominal damages
bailor
employment contract
clearinghouse
44. The authority of a court to hear and decide a specific case.
expropriation
testator
jurisdiction
choice-of-language clause
45. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.
fee simple
shelter principle
copyright
personal defenses
46. 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).
blue sky laws
quitclaim deed
limited partnership
question of fact
47. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.
assignor
premium
power of attorney
course of performance
48. The document filed with a designated state official by which a limited liability company is formed.
articles of organization
minimum wage
privity of contract
liquidated debt
49. 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
intangible property
operating agreement
sale
50. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.
prospectus
risk
bailment
constructive discharge