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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 party to whom the assignment is made.
Unenforceable Contract
Close (closed - closely held) corporation
Assignee
Law (Blackstone's Definition)
2. A criminal offense which is neither treason nor a felony.
Secret Partner
Employee
Par-value Stock
Misdemeanor
3. A body of persons elected by the stockholders to define and establish corporate policy.
Board of Directors
Contract
Bill of Lading
Assignor
4. The individual who initiates a civil action.
Tort
Plaintiff
Void Contract
Summons (Process)
5. Newest form of business ownership recognized in the U.S.; combines features of both the corporation and partnership.
Partnership
Property
Limited Liability Corporation
Offer
6. 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.
Ratification
Independent Contractor
Revocation
Summons (Process)
7. Operates in the state that granted the charter.
Domestic corporation
Unilateral Contract
Sole proprietorship
Trial Courts
8. The person against whom legal action is brought. 1
Defendant
Discharge
Certified Check
Private Corporation
9. Charging a person with a crime and asking for that person's plea.
Partnership
Arraignment
Bailee
Appellate Court
10. A third party beneficiary to whom no legal duty is owed and for whom performance is a gift.
Donee Beneficiary
Negotiable Instrument (Commercial Paper)
Close (closed - closely held) corporation
Misdemeanor
11. That which the promisor demands and receives as the price for a promise.
Sherman Antitrust Act
Necessaries (Necessities)
Consideration
Booking
12. An award paid to the injured party to cover the exact amount of their loss - but no more.
Compensatory Damages
Stockholders (Shareholders)
Void Contract
Promissory Note
13. A business owned by one person.
Endorser
Close (closed - closely held) corporation
Real Property
Sole proprietorship
14. 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.
Holder
Process (Summons)
Usurious
Principal
15. 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.
Promoter
Commercial Paper (Negotiable Instrument)
Limited Partner
Real Property
16. A relationship of trust and confidence - such as that which exists between partners in a partnership.
Fiduciary
Arrest
Order Paper
Offeree
17. One who contracts to perform certain tasks for a set fee - but who is contracting party as a means by which the contract is executed - except for specifications established in the contract.independent of the control of the
Authority
Judgment
Disaffirmance
Independent Contractor
18. Stock reacquired by a corporation.
Necessaries (Necessities)
Treasury Stock
Simple Contract
Booking
19. The person who executes any draft.
Summons (Process)
Drawer
Simple Contract
Implied Warranties
20. The annulment or cancellation of an instrument - act or promise by one doing or making it.
Revocation
Contract to Sell
Express Authority
Voidable Contract
21. Partner whose liability for the firm's debts is limited to the amount of his/her investment.
Limited Partner
Treasury Stock
Warranties
Complaint (petition)
22. An agent's authority to do things not specifically authorized in order to carry out express authority.
Duress
Sale
Implied Authority
Valid Contract
23. Those contracts that must be in special form or produced in a certain way - such as under seal.
Certified Check
Limited Partner
Formal Contract
Express Authority
24. An endorsement which limits the liability of the endorser.
Bearer
Qualified Endorsement
Appellate Court
Simple Contract
25. Customs that have become recognized by the courts as binding on the community.
Common Law
Agent
Draft
General Agent
26. The person to whom an offer is made.
Limited Liability Corporation
Consignee
Negotiation
Offeree
27. Court hearing cases appealed from lower courts.
Creditor Beneficiary
Injunction
Consideration
Appellate Court
28. Confirming an act that was executed without authority or an act which was voidable.
Existing Goods
Defendant
Ratification
Restrictive Endorsement
29. An agreement to an offer resulting in a contract.
Acceptance
Creditor Beneficiary
Donee Beneficiary
Assignee
30. Failure to exercise ordinary care; omission to do something which a reasonable - prudent person would do under ordinary circumstances or the doing of something which a reasonable and prudent person would not do; the lack of due care (exercised by a w
Assignor
Sole proprietorship
Negligence
Arraignment
31. A person in possession of an instrument.
Express Authority
Bearer
Board of Directors
Formal Contract
32. Partner unknown to public with no part in management.
Board of Directors
Minor
Dormant or sleeping partner
Property
33. Declared value of outstanding stock.
Misdemeanor
Limited Liability Corporation
Capital Stock
Tort
34. A creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.
Subchapter S Corporation
Future Goods
Compensatory Damages
Certificate of Deposit
35. The person who executes a promissory note.
Maker
Price
Restrictive Endorsement
Cashier's Check
36. A warranty imposed by law - arising automatically because the sale has been made.
Existing Goods
Bill of Lading
Implied Warranties
Identified Goods
37. The party who hires employees to do certain work. '1 Endorsee — a person who becomes the holder of a negotiable instrument by endorsements which names him or her as the person to whom the instrument is negotiated.
Employer
Injunction
Personal Property
Third Party Beneficiary
38. Improper influence that is asserted by one dominant person over another - without the threat or harm.
Personal Property
Undue Influence
Business Law
Principal
39. The party appointed by the principal to enter into a contract with a third party on behalf of the principal.
Agent
Accord and Satisfaction
Implied Authority
Board of Directors
40. Items - required or proper and useful - for sustaining a human being at an appropriate living standard (examples: food - clothing and shelter).
Executory Contracts
Bailor
Necessaries (Necessities)
Negligence
41. A decision of a court.
Property
Fiduciary
Negotiation
Judgment
42. Having no words other than the signature of the endorser.
Implied Warranties
Blank Endorsement
Drawer
Minor
43. A writing drawn in a special form which can be transferred from person to substitute for money or as an instrument of credit.
Sale
Beneficiary
Negotiable Instrument (Commercial Paper)
Compensatory Damages
44. The signature or statement of purpose by the owner on the back of the instrument.
Crime
Offer
Statutes
Endorsement
45. An endorsement which prevents the use of the instrument for anything except the stated use.
Bailor
Restrictive Endorsement
Negotiable Instrument (Commercial Paper)
Misrepresentation
46. Any contract other than a formal contract - whether written - oral or implied.
Appellate Court
Holder
Service Contracts
Simple Contract
47. A commercial paper payable to bearer; i.e. to the person having possession of such.
Bearer Paper
Certificate of Deposit
Express Warranty
Authority
48. An agreement of no legal effect.
Merchant
Void Contract
Commercial Paper (Negotiable Instrument)
Special Agent
49. A law that restricts the period of time within which an action may be brought to court.
Creditor Beneficiary
Express Contract
Formal Contract
Statute of Limitations
50. The person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done.
Unilateral Contract
Employee
Business Law
Contract