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Business Law 2 > Unit Two Test > Flashcards

Unit Two Test Flashcards

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1
Q

credit sale of goods or a secured loan that provides special protection for the creditor

A

secured transaction

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2
Q

property right that enables the creditor to take possession of the property if the debtor does not pay the amount owed

A

security interest

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3
Q

property pledged by a borrower as security for a debt

A

collateral

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4
Q

person who is owed money, also may be a secured party

A

creditor

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5
Q

person owed the money, whether as a seller or a lender, in a secured transaction in personal property

A

secured party

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6
Q

buyer on credit

A

debtor

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7
Q

agreement of the creditor and the debtor that the creditor will have a security interest

A

security agreement

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8
Q

consideration or antecedent debt or security given in exchange for the transfer of a negotiable instrument or creation of a security interest

A

value

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9
Q

the security interest in the goods a seller on credit that become the collateral for the creditor/seller

A

purchase money security interest (PMSI)

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10
Q

goods used or bought primarily for personal, family, or household use

A

consumer goods

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11
Q

goods acquired after a security interest has attached

A

after acquired goods

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12
Q

claim changing or shifting stock of goods of the buyer

A

floating lien

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13
Q

security interest with priority because of filing, possession, automatic, or temporary priority status

A

perfected security interest

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14
Q

stored goods under the exclusive control of a warehouse but kept on the owners premises rather than in the warehouse

A

field warehousing

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15
Q

perfection given by statute without specific filing or possession requirements on the part of the creditor

A

automatic perfection

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16
Q

perfection given for a limited period of time of creditors

A

temporary perfection

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17
Q

brief statement that gives sufficient info to alert third persons that a particular creditor may have a security interest in a collateral described

A

financing statement

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18
Q

document or record, which may be requested by a paid-up debtor, stating that a security interest is no longer claimed under the specified financing statement

A

termination statement

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19
Q

proportionately, or divided according to a rate or standard

A

pro rata

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20
Q

creditor whose interest attached first has priority in the collateral when two creditors have a secured interest

A

first in time provision

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21
Q

rule of priorities that holds that first in time in perfecting a security interest, mortgage, judgement, lien, or other property attachment right should have priority

A

first to perfect basis

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22
Q

creditors right to repossess the collateral without judicial proceedings

A

self-help repossession

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23
Q

violation of the law in the repossession of the collateral

A

breach of the peach

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24
Q

pledge or guaranty to pay the debt or be liable for the default of another

A

suretyship

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25
Q

promisor

A

obligor

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26
Q

obligor of a suretyship, primarily liable for the debt or obligation of the principal debtor

A

surety

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27
Q

agreement or promise to answer for a debt, an undertaking to pay the debt of another if the creditor first sues the debtor

A

guaranty

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28
Q

one who undertakes the obligation of guaranty

A

guarantor

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29
Q

person or firm who employs an agent, the person who, with respect to a surety, is primarily liable to the third person or creditor, property held in trust

A

principal

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30
Q

original borrower for debtor

A

principal debtor

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31
Q

buyer on credit

A

debtor

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32
Q

promisee who can claim the benefit of the obligation

A

obligee

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33
Q

person who is owed money, also may be a secured party

A

creditor

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34
Q

form of guaranty in which creditor cannot proceed against guarantor until after proceeding against debtor

A

guaranty of collection

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35
Q

agreement that creates the same obligation for the guarantor as a suretyship does for a surety, a guaranty of payment creates an absolute guaranty

A

absolute guaranty

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36
Q

absolute promise to pay when a debtor defaults

A

guaranty of payment

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37
Q

agreement by one person, for consideration, to pay another person a sum of money in the event that the other person sustains a specified loss

A

indemnity contract

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38
Q

agreement or provision in an agreement that one party shall not be held liable for loss, the right of the surety to demand that those primarily liable pay the claim for which the surety is secondarily liable

A

exoneration

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39
Q

right of a party secondary liable to stand in the place of the creditor after making payment to the creditor and to enforce the creditors right against the party primarily liable in order to obtain indemnity from such primary party

A

subrogation

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40
Q

right of a person secondarily liable to require that a person primarily liable pay for loss sustained when the secondary party discharges the obligation that the primary party should have discharged, an undertaking to pay another a sum of money to indemnity when loss is incurred

A

indemnity

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41
Q

right of a co-obligor who has paid more than a proportionate share to demand that other obligors pay their pro rate share

A

contribution

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42
Q

sureties for the same debt

A

co-sureties

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43
Q

intentional making a false statement of fact, with knowledge or reckless indifference that it is false with resulting reliance by another

A

fraud

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44
Q

failure to volunteer information not requested

A

concealment

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45
Q

bailment given as security for the payment of a debt or the performance of an obligation owed to the pledgee

A

pledge

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46
Q

commercial device used to guarantee payment to a seller, primarily in an international business transaction

A

letter of credit

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47
Q

party who issues a document such as a letter of credit or a docuement of title such as a warehouse receipt of bill of lading

A

issuer

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48
Q

letter of credit for a contractor ensuring he will complete the project as contracted

A

standby letter

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49
Q

bank that tells beneficiary that letter of credit has been issued

A

advising bank

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50
Q

will honor the letter of credit from the domestic bank of the buyer

A

correspondent bank

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51
Q

court of special jurisdiction to determine bankruptcy issues

A

bankruptcy courts

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52
Q

liquidation form of bankruptcy under federal law

A

chapter 7 bankruptcy

53
Q

process of converting property into money whether of particular items of property or of all the assets of a business or an estate

A

liquidation

54
Q

reorganization form of bankruptcy under federal law

A

chapter 11 bankruptcy

55
Q

proceeding of consumer debt readjustment plan bankruptcy

A

chapter 13 bankruptcy

56
Q

proceeding in which the debtor files the petition for relief

A

voluntary bankruptcy

57
Q

new standard under the reform act that requires the court to find that the debtor does not have the means to repay creditors, goes beyond the past requirements of petitions being granted on the simple assertion of the debtor saying i have debts

A

means test

58
Q

proceeding in which a creditor or creditors file the petition for relief with the bankruptcy court

A

involuntary bankruptcy

59
Q

in good faith, without any fraud or deceit

A

bona fide

60
Q

order to prevent creditors from taking action such as filing suits or seeking foreclosure against the debtor

A

automatic stay

61
Q

the order from the bankruptcy judge that starts the protection for the debtor, when this is entered by the court, the debtors creditors must stop all proceedings and work through the bankruptcy court to recover debts. Court finding that creditors have met the standards for bankruptcy petitions

A

order of relief

62
Q

impartial person elected to administer the debtors estate

A

trustee in bankruptcy

63
Q

transfer of property by a debtor to one or more specific creditors to enable these creditors to obtain payment for debts owed

A

preferences

64
Q

excess of debts and liabilities over assets, or inability to pay debts as they mature

A

insolvency

65
Q

comparison of assets to liabilities made to determine solvency

A

balance sheet test

66
Q

certain transfer of money or security interests in the time frame just prior to bankruptcy that can be set aside if voidable

A

preferential transfers

67
Q

full time corporate employee or a director or their relatives

A

insider

68
Q

creditors rights to payment

A

claim

69
Q

written statement, signed by the creditor or an authorized representative, setting forth any claim made against the debtor and the basis for it

A

proof of claim

70
Q

order of the bankruptcy court relieving the debtor from obligation to pay the unpaid balance of most claims

A

discharge in bankruptcy

71
Q

a plan of security against risks by charging the loss against a fund created by the payments made by policyholders

A

insurance

72
Q

promisor in an insurance contract

A

insurer

73
Q

insurer

A

underwriter

74
Q

person to whom the promise in an insurance contract is made

A

insured

75
Q

paper evidencing the contract of insurance

A

policy

76
Q

agent of an insurance company

A

insurance agent

77
Q

independent contractor who is not employed by any one insurace company

A

insurance broker

78
Q

right of a party secondarily liable to stand in the place of the creditor after making payment to the creditor and to enforce the creditors right against the party primarily liable in order to obtain indemnity from such primary party

A

subrogation

79
Q

peril or contingency against which the insured is protected by the contract of insurance

A

risk

80
Q

policies that cover perils relating to the transportation of goods

A

marine insurance

81
Q

policies that cover transportation of goods in vessels in international and coastal trade

A

ocean marine

82
Q

insurance that covers domestic shipments of goods over land and inland waterways

A

inland marine

83
Q

insurance that covers physical damage on a freight-moving vessel

A

hull insurance

84
Q

insurance that protects a cargo owner against financial loss if goods being shipped are lost or damaged at sea

A

cargo insurance

85
Q

covers the shipowners liability if the ship causes damage to another ship or its cargo

A

liability insurance

86
Q

insures that shipowner will receive payments for transportation charges

A

freight insurance

87
Q

a contract that indemnifies the insured for property destruction or damage caused by fire

A

fire insurance policy

88
Q

combination of standard fire insurance and comprehensive personal liability insurance

A

homeowners insurance policy

89
Q

clause requiring the insured to maintain insurance on property up to a stated amount and providing that to the extent that this is not done, the insured is to be deemed a coinsurer with the insurer, so that the latter is liable only for its proportionate share of the amount of insurance required to be carried

A

coinsurance clause

90
Q

policy written for a specified number of years that terminates at the end of that period

A

term insurance

91
Q

ordinary life insurance providing lifetime insurance protection

A

whole life insurance

92
Q

sum paid the insured upon the surrender of a policy to the insurer

A

cash surrender value

93
Q

insurance that pays the face amount of the policy if the insured dies within the policy period

A

endowment insurance

94
Q

provision for payment if double the amount specified by the insurance contract if death is caused by an accident and occurs under specified circumstances

A

double indemnity

95
Q

any incapacity resulting from bodily injury or disease to engage in an occupation for remuneration or profit

A

disability

96
Q

person to whom the proceeds of a life insurance policy are payable, a person for whose benefit property is held in trust, or a person given property by a will, the ultimate recipient of the benefit of a funds transfer

A

beneficiary

97
Q

provision that after the lapse of a specified time the insurer cannot dispute the policy on the ground of misrepresentation or fraud of the insured or similar wrongful conduct

A

incontestability clause

98
Q

relationship that exists between a person identified as a principal and another by virtue of which the latter may make contracts with third persons on behalf of the principal

A

agency

99
Q

person or firm who is authorized by the principal or by operation of law to make contracts with third persons on behalf of the principal

A

agent

100
Q

person or firm who employs an agent, person who, with respect to a surety, is primarily liable to the third person or creditor, property held in trust

A

principal

101
Q

contractor who undertake to perform a specified task according to the terms of a contract but over whom the other contracting party has no control except as provided for by the contract

A

independent contractor

102
Q

agent authorized to transact a specified transaction or to do a specific act

A

special agent

103
Q

agent authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place

A

general agent

104
Q

agent authorized by the principal to do all acts that can lawfully by delegated to a representative

A

universal agent

105
Q

form of agency in which an agent has been given or paid for the right to exercise authority

A

interest in the authority

106
Q

form of agency in which an agent is given an interest in the property with which that agent is dealing

A

interest in the subject matter

107
Q

authorization of an agent to perform a certain act

A

express authorization

108
Q

written authorization to an agent by the principal

A

power of attorney

109
Q

agent authorized to act for another under a power of attorney

A

attorney in fact

110
Q

authority of an agent that is reasonably necessary to execute express authority

A

incidental authority

111
Q

authority of an agent to do any act that, according to the custom of the community, usually accompanies the transaction for which the agent is authorized to act

A

customary authority

112
Q

appearance of authority created by the principal’s words or conduct

A

apparent authority

113
Q

principal whose identity is made known by the agent as well as the fact that the agent is acting on the principals behalf

A

disclosed principal

114
Q

principal whose existence is made known identify is not

A

partially disclosed principal

115
Q

principal on whose behalf an agent acts without disclosing to the third person the facts of agency or the identity of the principal

A

undisclosed principal

116
Q

imposing liability for the fault of another

A

vicarious liabilty

117
Q

doctrine that the principal or employer is vicariously liable for the unauthorized torts committed by the agent or employee while acting within the scope of the agency or the course of the employment respectively

A

respondeat superior

118
Q

salesperson

A

soliciting agent

119
Q

agent with authority to make contracts, person with whom the buyer deals

A

contracting agent

120
Q

doctrine in which the employer has historically been allowed to terminate the employment contract at any time for any reason or for no reason

A

employment at will doctrine

121
Q

right of an employer to use in business without charge an invention discovered by an employee during working hours and with the employers material and equipment

A

shop right

122
Q

union strikers trying to enforce bargaining demands when an impasse has been reached in the negotiation process for a collective bargaining agreement

A

economic strikers

123
Q

legal presentations in front of a business notifying the public of a labor dispute

A

primary picketing

124
Q

illegal tactic of employees massing together in great numbers to effectively shut down entrances of the employers facility

A

mass picketing

125
Q

picketing an employer with which a union has no dispute to persuade the employer to stop doing business with a party to the dispute, generally illegal under the NLRa

A

secondary picketing

126
Q

a plan providing individuals accounts for each employee participant with benefits defined solely on the amounts contributed by each employee with matching contributions by the employer

A

defined contribution plan

127
Q

an employer established pension fund obligated the employer to make specified future payments to participants upon retirement

A

defined benefit plan

128
Q

an insurance plan to protect employees covered by defined benefit plans in case an employer is unable to meet its payment obligations from the employers pension fund

A

pension benefit guaranty corporation

129
Q

plan to have a diverse and representative workforce

A

affirmative action plan

Business Law 2 (8 decks)

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