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Test your basic knowledge |
Business Law Vocab
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. 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.
Valid Contract
Offeror
Stare Decisis
Rescission
2. A means whereby one party conveys rights to another person who is not a party to the original contract.
Assignment
Minor
Statute of Frauds
Secret Partner
3. A law that restricts the period of time within which an action may be brought to court.
Offeror
Certified Check
Statute of Limitations
Rescission
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.
Price
Bearer
Commercial Paper (Negotiable Instrument)
Unenforceable Contract
5. Partner unknown to public with no part in management.
Treasury Stock
Identified Goods
Dormant or sleeping partner
Nominal Partner
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.
Nominal Partner
Offeror
Promissory Estoppel
Punitive Damages
7. A provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract.
Limited Partner
Liquidated Damages
Sherman Antitrust Act
Bailment
8. Exceeding the maximum rate of interest which may be charged on loans.
Commercial Paper (Negotiable Instrument)
Qualified Endorsement
Usurious
Special Endorsement
9. Stock reacquired by a corporation.
Close (closed - closely held) corporation
Treasury Stock
Tort
Negotiable Instrument (Commercial Paper)
10. Those contracts in which the terms have not been completely executed or fulfilled.
Revocation
Executed Contracts
Executory Contracts
General Agent
11. Partner active in a business unknown to the public.
Service Contracts
Liquidated Damages
Consignee
Secret Partner
12. Items - required or proper and useful - for sustaining a human being at an appropriate living standard (examples: food - clothing and shelter).
Secret Partner
Revocation
Necessaries (Necessities)
Punitive Damages
13. Those contracts that must be in special form or produced in a certain way - such as under seal.
Negligence
Endorser
Discharge
Formal Contract
14. Designation that applies when a corporation operates in any state other __ than where it is chartered.
Check
Warranties
Foreign Corporation
Discharge
15. An agreement made and executed in satisfaction of the rights one has from a previous contract.
Accord and Satisfaction
Implied Warranties
Arrest
Discovery
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.
Check
Assignor
Order Paper
Disaffirmance
17. The acknowledgment by a bank of a receipt of money with an agreement of repayment.
Rescission
Certificate of Deposit
Nominal Partner
Assignee
18. Stock that entitles owner vote.
Common Stock
Principal
Subchapter S Corporation
Discharge
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.
Counteroffer
Process (Summons)
General Partner
Arrest
20. A writing drawn in a special form which can be transferred from person to substitute for money or as an instrument of credit.
Negotiation
Personal Property
Negotiable Instrument (Commercial Paper)
Voidable Contract
21. An award paid to the plaintiff in order to punish the defendant - not to compensate the plaintiff.
Bearer Paper
Warranties
Punitive Damages
Disaffirmance
22. A relationship of trust and confidence - such as that which exists between partners in a partnership.
Fiduciary
Principal
Voidable Contract
Offeror
23. Evidences of ownership of personal property such as stock of corporations - checks and copyrights.
Treasury Stock
Intangible Personal Property
Bearer Paper
Drawer
24. A party who appoints a second party to serve as an agent.
Principal
Acceptance
Identified Goods
Bailee
25. The person who executes any draft.
Independent Contractor
Existing Goods
Discovery
Drawer
26. The transfer of title to goods from the seller to the buyer for a consideration called the price.
Sale
Special Endorsement
Duress
Consignee
27. Partner whose liability for the firm's debts is limited to the amount of his/her investment.
Limited Partner
Law (Blackstone's Definition)
Bailment
Principal
28. The party who acquires possession but not the title of personal property in a bailment.
Partnership
Bailee
Preferred Stock
Endorser
29. An agreement wherein a seller agrees to transfer title of goods to a buyer for a consideration (price) - at a future time.
Principal
Contract to Sell
Tort
Certified Check
30. The party appointed by the principal to enter into a contract with a third party on behalf of the principal.
Implied Authority
Agent
Criminal Law
Payee
31. A criminal offense that is punishable by confinement in prison or by death.
Negotiable Instrument (Commercial Paper)
Felony
Express Contract
Close (closed - closely held) corporation
32. A person under full legal age; in most states (but not all) - the standard is under the age of eighteen.
Promoter
Defendant
Minor
Common Law
33. Laws which seek to promote competition among businesses.
Antitrust
Counteroffer
Cashier's Check
Dormant or sleeping partner
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.
Fraud
Real Property
Certified Check
Consignee
35. The repudiation of - or election to avoid - a voidable contract.
Nominal Damages
Disaffirmance
Process (Summons)
Assignor
36. Confirming an act that was executed without authority or an act which was voidable.
Shareholders (Stockholders)
Consideration
Fiduciary
Ratification
37. Person who writes his or her name on back of instrument.
Defendant
Endorser
Felony
Beneficiary
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.
Special Endorsement
Nominal Damages
Executory Contracts
Statute of Frauds
39. An endorsement which prevents the use of the instrument for anything except the stated use.
Common Law
Restrictive Endorsement
Executory Contracts
Offeror
40. One in which terms of the contract are implied by acts or conduct of the '_ parties.
Offer
Implied Contract
Discovery
Statute of Limitations
41. One in possession of commercial paper.
Secret Partner
Holder
Negotiation
Common Stock
42. Newest form of business ownership recognized in the U.S.; combines features of both the corporation and partnership.
Limited Liability Corporation
Silent Partner
General Partner
Certified Check
43. Customs that have become recognized by the courts as binding on the community.
Common Law
Valid Contract
Voidable Contract
Qualified Endorsement
44. The party who gives up possession - but not title - of property in a bailment.
Booking
Check
Fiduciary
Bailor
45. Movable tangible personal property.
Usurious
Bailee
Statute of Limitations
Goods
46. A contract remedy by which the court requires the breaching party to perform the contract.
Special Performance
Real Property
Negligence
Bailment
47. The individual who initiates a civil action.
Disaffirmance
Plaintiff
Promoter
Appellate Court
48. A check for which the bank assures that the drawer has sufficient funds to make payment.
Malpractice
Booking
Limited Partner
Certified Check
49. One to whom goods are shipped by common carrier.
Shareholders (Stockholders)
Certified Check
Consignee
Disaffirmance
50. An intended acceptance which changes or qualifies the offer - and is a rejection of the original offer.
Simple Contract
Counteroffer
General Agent
Crime