#1
Which legal document outlines the internal rules and procedures of a company?
Articles of Association
ExplanationDefines the internal governance structure and rules for operation within a company.
#2
Which legal concept refers to the obligation to act in the best interests of another party?
Fiduciary duty
ExplanationLegal obligation to prioritize the interests of another party, often seen in relationships involving trust.
#3
What legal doctrine allows a party to escape a contract if certain conditions are not met?
Doctrine of frustration
ExplanationPermits contract termination if unforeseen events make performance impossible or radically different.
#4
What is the primary purpose of the Securities and Exchange Commission (SEC) in the United States?
Regulating the stock and securities industry
ExplanationOversees and regulates the securities industry to ensure fair and transparent financial markets.
#5
In the context of bankruptcy law, what is Chapter 7 primarily associated with?
Liquidation of assets to pay off debts
ExplanationInvolves the sale of a debtor's assets to settle outstanding debts.
#6
What is the primary purpose of a non-disclosure agreement (NDA) in a business context?
To protect sensitive information from being shared with third parties
ExplanationDesigned to safeguard confidential information from unauthorized disclosure.
#7
In the context of employment law, what does the term 'at-will employment' mean?
Employment with no fixed duration and can be terminated by either party at any time
ExplanationEmployment relationship where either the employer or employee can terminate the contract at any time without cause.
#8
In a contract, what does the term 'consideration' mean?
The exchange of something of value between the parties
ExplanationMutual exchange of something valuable, a necessary element in forming a valid contract.
#9
What is the primary purpose of antitrust laws in business?
To promote fair competition and prevent monopolistic practices
ExplanationDesigned to maintain fair competition and curb monopolistic behavior in the market.
#10
In the context of intellectual property, what does the acronym 'IP' commonly refer to?
Intellectual property
ExplanationEncompasses creations of the mind, including inventions, designs, and trademarks.
#11
What is the purpose of a trademark in business law?
To protect the visual identity of a brand
ExplanationPreserves the distinctiveness of a brand's visual elements, such as logos and symbols.
#12
What legal principle holds that an employer is liable for the actions of employees performed within the course of employment?
Respondeat superior
ExplanationDoctrine attributing legal responsibility to employers for actions of their employees during work duties.
#13
Which legal doctrine allows a court to set aside or invalidate a contract due to unequal bargaining power?
Unconscionability
ExplanationEnables the court to void contracts that are grossly unfair due to significant power imbalances.
#14
What legal principle holds that individuals are presumed innocent until proven guilty in a court of law?
Presumption of innocence
ExplanationLegal presumption that individuals are considered innocent until proven guilty.
#15
Which legal principle states that an individual cannot be tried for the same crime twice?
Double jeopardy
ExplanationProhibits prosecuting an individual for the same offense after acquittal or conviction.