Test your basic knowledge |

Business Law Vocab

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. The principle that the decision of a court should serve as a guide or precedent and control the decision of a similar case in the future.






2. A means whereby one party conveys rights to another person who is not a party to the original contract.






3. A law that restricts the period of time within which an action may be brought to court.






4. A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit.






5. Partner unknown to public with no part in management.






6. An equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment.






7. A provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract.






8. Exceeding the maximum rate of interest which may be charged on loans.






9. Stock reacquired by a corporation.






10. Those contracts in which the terms have not been completely executed or fulfilled.






11. Partner active in a business unknown to the public.






12. Items - required or proper and useful - for sustaining a human being at an appropriate living standard (examples: food - clothing and shelter).






13. Those contracts that must be in special form or produced in a certain way - such as under seal.






14. Designation that applies when a corporation operates in any state other __ than where it is chartered.






15. An agreement made and executed in satisfaction of the rights one has from a previous contract.






16. An order by a depositor on the bank to pay a sum of money to a payee. Civil Law — legal proceedings concerned with the rights of public citizens.






17. The acknowledgment by a bank of a receipt of money with an agreement of repayment.






18. Stock that entitles owner vote.






19. A notice of complaint given to a defendant - defining the complaint and a time frame in which a response - or answer - must be filed - and which serves the purpose of conferring personal jurisdiction over the defendant.






20. A writing drawn in a special form which can be transferred from person to substitute for money or as an instrument of credit.






21. An award paid to the plaintiff in order to punish the defendant - not to compensate the plaintiff.






22. A relationship of trust and confidence - such as that which exists between partners in a partnership.






23. Evidences of ownership of personal property such as stock of corporations - checks and copyrights.






24. A party who appoints a second party to serve as an agent.






25. The person who executes any draft.






26. The transfer of title to goods from the seller to the buyer for a consideration called the price.






27. Partner whose liability for the firm's debts is limited to the amount of his/her investment.






28. The party who acquires possession but not the title of personal property in a bailment.






29. An agreement wherein a seller agrees to transfer title of goods to a buyer for a consideration (price) - at a future time.






30. The party appointed by the principal to enter into a contract with a third party on behalf of the principal.






31. A criminal offense that is punishable by confinement in prison or by death.






32. A person under full legal age; in most states (but not all) - the standard is under the age of eighteen.






33. Laws which seek to promote competition among businesses.






34. The intentional or reckless false statement of a material fact upon which the injured party relied which induced the injured party to enter into a contract to his or her detriment.






35. The repudiation of - or election to avoid - a voidable contract.






36. Confirming an act that was executed without authority or an act which was voidable.






37. Person who writes his or her name on back of instrument.






38. A statute originally enacted by the English Parliament and now enacted in some form in all states - listing certain types of contracts which could be enforced only if in written form.






39. An endorsement which prevents the use of the instrument for anything except the stated use.






40. One in which terms of the contract are implied by acts or conduct of the '_ parties.






41. One in possession of commercial paper.






42. Newest form of business ownership recognized in the U.S.; combines features of both the corporation and partnership.






43. Customs that have become recognized by the courts as binding on the community.






44. The party who gives up possession - but not title - of property in a bailment.






45. Movable tangible personal property.






46. A contract remedy by which the court requires the breaching party to perform the contract.






47. The individual who initiates a civil action.






48. A check for which the bank assures that the drawer has sufficient funds to make payment.






49. One to whom goods are shipped by common carrier.






50. An intended acceptance which changes or qualifies the offer - and is a rejection of the original offer.