WGU C713 - Business Law exam questions and answers 2024

Absolute privilege A witness testifying a court or legislature may never be sued for defamation Acceptance Retention of the collateral by a secured party as full or partial satisfaction of a debt Accepts To sign a draft Accession Occurs when one person uses labor, materials or both to add value to personal property belonging to another person Accommodated Party Someone who receives a benefit from an accommodation party Accommodation Party Someone other than an issuer, acceptor, or indorser, who adds their signature to an instrument for the purpose of being liable on it. Accord and satisfaction A completed agreement to settle a debt for less than the sum claimed. Accredited investors Institutions or wealthy individuals. To qualify individuals must have a net worth of more than $1 Million or an annual income of more than $200,000 Activist investor A shareholder with a large block of stock whose goal is to influence management decisions and strategic direction Additional terms Terms that raise issues not covered in the offer. Adhesion contracts Standard form contracts pepared by one party and presented to the other on a "take it or leave it" basis Adjudicate To hold a formal hearing about an issue and decide it. Administrative Law judge An agency employee who acts as an impartial decision maker Adoption When a corporation accepts legal responsibility for a contract Affirm To allow the decision to stand Affirmed Permitted to stand After-acquired property Items that the debtor obtains after the parties have made their security agreement. Agent In an agency relationship, the person who is acting on behalf of a principal Agreement on Trade Related Aspects of Intellectual Property (TRIPs) A treaty on intellectual property Alternative Dispute Resolution Any other formal or informal process used to settle disputes without resorting to trial. Ambiguity When a provision in a contract is unclear by accident. Annual Report A document that the SEC requires public companies to provide to their shareholders each year. Annuities Provide payment to a beneficiary during his lifetime Antitakeover devices Defensive measures to protect against a hostile takeover Appeals Court Higher courts that review the trial record to see if the court made errors of law Appellant The party filing the appeal Appellee The party opposing the appeal Approved intermediary A broker or website that is registered with the SEC Arbitration A binding process of resolving legal disputes by submitting them to a neutral third party Arson The malicious use of fire explosives to damage or destroy real estate or personal property Artisan's lien A security interest in personal property Assult An act that makes a person reasonably fear an imminent battery Assignment Transferring contract rights Assignment of rights A transfer of benefits under a contract to another person. Attachment A three-step process that creates an enforceable security interest Authorized and issued Stock has been authorized and sold; another word for it is outstanding Authorized and unissued Stock that has been authorized but not yet sold Automatic Stay Prohibits creditors from collecting debts that the bankrupt incurred before the petition was filed. BACT Best Available Control Technology Bailee The one with temporary possession of another's goods Bailment The rightful possession of goods by one who is not the owner, usually by mutual agreement between the bailor and bailee Bait-and-switch A practice whereby sellers advertise products that are not generally available but are being used to draw interested parties in so that they will buy other products Bankruptcy Estate The new legal entity created when a bankruptcy petition is filed. The debtor's existing assets pass into the estate. Bargained For When something is sought by the promisor and given by the promise in exchange for their promises Battery An intentional touching of another person in a way that is harmful or offensive Bearer paper A note if it is made out to "bearer" or it is not made out to any specific person. It can be redeemed by any holder in due course. Behavioral Marketing or Targeting The practice of aiming certain advertisements at consumers based on their online behavior Bench trial There is no jury; The judge reaches a verdict Best efforts underwriting The underwriter doesn't buy the stock from the issuer but instead acts as the issuer's agent in selling the securities Beyond a reasonable doubt The very high burden of proof in a criminal trial, demanding much more certainty than required in a civil trial. Bilateral Contract A promise made in exchange for another promise Bill A proposed statute, submitted to congress or a state legislature Binder A short document acknowledging receipt of an application and premium for an insurance policy Blue Sky Laws State securities statutes Bona fide occupational qualification (BFOQ) An employer is permitted to establish discriminatory job requirements if they are essential to the position in question Breach of the peace Any action that disturbs public tranquility and order Briefs Written arguments on the case But-for Causation The retaliatory action would not have occurred if it were not for the defendant's discriminatory intent. Buyer in ordinary course of business (BIOC) Someone who buys goods in good faith from a seller who routinely deals in such goods. Bylaws A document that specifies the organization rules of a corporation or other organization, such as the date of the annual meeting and the required number of directors. Cap & Trade A market-based system for reducing emissions Cashier's check A check drawn on the bank itself. It is a promise that the bank will pay out of its own funds. Certificate of deposit A note that is made by a bank (also known as a CD) Certified Check A check that the issuer's bank has signed, indicating its acceptance of the check. Challenges for cause A claim that a juror has demonstrated probable bias Charging order A court order granting a third party the right to receive a share of partnership profits Check The most common form of a draft, it is an order telling a bank to pay money Check Cards another name for debit cards Check Kiting Moving funds between bank accounts to take advantage of the float. Choice of forum Determine the state in which any litigation would take place Choice of law provisions Determine which state's laws will be used to interpret the contract Civil Law Regulates the rights and duties between parties Claim in recoupment The issuer subtracts any other claims he has against the initial payee from the amount he owes on the instrument Class Action One plaintiff represents the entire group of plaintiffs, including those who are unaware of the lawsuit or even unaware they were harmed Close corporation A corporation with a small number of shareholders whose stock is not publicly traded and whose shareholders play an active role in management - it is entitled to special treatment under state law. Codicil An amendment to a will Collective Bargaining Unit (CBU) A contract between a union and management Comment Letter A letter form the SEC to an issuer with a list of