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CLEP Introductory Business Law

Subjects : clep, law, business-law
  • Answer 50 questions in 15 minutes.
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  • 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 obligee who officially assigned over his rights

2. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.

3. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.

4. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).

5. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.

6. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.

7. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.

8. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions

9. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c

10. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.

11. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.

12. This is when an assignment is not supported by consideration and is revocable. It will only become irrevocable when (a) the obligor has performed her obligations to the assignee - (b) the assignor delivers the assignment in writing to the assignee -

13. The power of the Supreme Court to review federal or state law as constitutional or not. It is the result of the 'Marbury v Madison' case.

14. When the creditor initiates the proceedings.

15. The creditor's right to take possession of the property is called foreclosure

16. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s

17. The documents that parties file in connection with their lawsuit

18. They are the 'Federal Rules' that govern the procedures for filing a civil suit in federal cort. The states have adopted their own rules of procedures - but they generally are parallel to the federal rules.

19. A distinct mark or symbol that identifies a business and its products

20. When the jury retires to a separate room to decide the outcome of the case.

21. Safeguards consumer's personal information by ensuring that financial institutions that have access to private financial information have protection plans for that information - ensures that consumers receive better disclosure regarding a financial i

22. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.

23. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.

24. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)

25. Not discriminating against foreign product - thereby treating all products within their border equally

26. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for

27. In some contracts - the parties will stipulate the amount of damages to be awarded upon a breach. The courts will award such amount if the damages were difficult to determine at the time the contract was written - the stipulated amount is a reason fo

28. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe

29. Automatic violations of the Sherman Act

30. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)

31. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices

32. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor

33. Actual performance of an obligation

34. The difference between the value of the performance a party should have received and the value of the performance the party actually received.

35. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -

36. A supervening stature makes a contract illegal - and thereby makes performance impossible

37. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'

38. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.

39. Administers federal labor laws

40. The written set of charges against the defendant - which is presented to a grand jury.

41. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

42. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)

43. The person being sued

44. Punitive damage - non-economic damages - and attorneys' fees

45. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.

46. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.

47. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts

48. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.

49. Contracts that are formed for the intended benefit of some third party.

50. The creditor's security interest in real property