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Legal Concepts in Business Quiz

#1

Which of the following is NOT a type of intellectual property?

Labor law
Explanation

Labor law is not intellectual property.

#2

What is the purpose of 'indemnity' in contracts?

To compensate for loss or damage.
Explanation

Compensation for loss or damage.

#3

What is the primary function of a 'non-disclosure agreement' (NDA)?

To protect confidential information from being disclosed to third parties.
Explanation

Confidentiality protection.

#4

What is the primary purpose of 'arbitration' in dispute resolution?

To resolve disputes outside of court through a neutral third party.
Explanation

Dispute resolution via neutral third party.

#5

What is 'intellectual property' (IP)?

Intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols.
Explanation

Intangible creations of human intellect.

#6

What is the definition of 'force majeure' in legal terms?

A contractual provision that allows a party to suspend or terminate performance due to unforeseen circumstances beyond their control.
Explanation

Contractual provision for unforeseen circumstances.

#7

What does 'tort' refer to in legal terminology?

A wrongful act or an infringement of a right leading to civil legal liability.
Explanation

Wrongful act causing legal liability.

#8

What is the principle of 'caveat emptor' in contract law?

Let the buyer beware - the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase.
Explanation

Buyer responsibility for goods' quality.

#9

What does 'force majeure' NOT typically cover in a contract?

Economic downturns
Explanation

Exclusion of economic downturns.

#10

What is the 'statute of limitations' in legal terms?

A law that sets the maximum time after an event within which legal proceedings may be initiated.
Explanation

Maximum time for legal action initiation.

#11

What is the doctrine of 'respondeat superior'?

A legal doctrine holding employers responsible for the wrongful acts of their employees.
Explanation

Employer responsibility for employee actions.

#12

What does 'estoppel' mean in legal context?

A legal doctrine that prevents a person from asserting a claim or right that contradicts what they previously said or agreed upon.
Explanation

Preventing contradiction of prior statements.

#13

What does 'voir dire' mean in the legal context?

The process of selecting and questioning potential jurors.
Explanation

Jury selection and questioning process.

#14

What is 'doctrine of privity' in contract law?

A doctrine that limits who can enforce a contract to only the parties involved.
Explanation

Limiting contract enforcement to involved parties.

#15

What is 'duress' in contract law?

A situation where a person is unlawfully compelled to enter into a contract under threat.
Explanation

Entering a contract under unlawful threat.

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