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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
Subjects
:
clep
,
law
,
business-law
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
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. When a court believes that a contract is so one-sides and unfair that it would be unconscionable to enforce it. (Two different types are substantive and procedural) A contract becomes voidable
Federal Insurance Contributions Act
Section 11 of the Securities Act
Pre-existing duty
Unconscionability
2. A condition that must occur before a duty to perform arises
Condition precedent
Clean Air Act
Direct damages
Administrative Procedure Act
3. Actual performance of an obligation
Defined contribution plan
Foreclosure
Satisfaction
Summons
4. 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
Price fixing
Judgment n.o.v.
Liquidated damages clause
Public company
5. The difference between the value of the property as substantially complete and the value of the property upon full performance
Third party beneficiary
Diminution in value
Defenses against liability of misrepresentations or omissions
Tender offers
6. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is
Specialized federal courts
Parol Evidence Rule
Proxy
Breach
7. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable
Demurrer
Substantive unconscionability
Exchange Act Regulations
Equity of redemption
8. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable
Regulation S of the Securities Act
Automatic stay
Mistake
Defendant
9. 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
'due process'
Illusory promise
Gramm-Leach-Bliley Act
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
10. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d
The Statute of Frauds
Expectation damages (also known as the 'benefit of the bargain')
Strict liability
Mistake
11. Rules of ethics that govern the practice of law and the conduct of lawyers
Regulation D of the Securities Act
Federal Communications Commission
Legal ethics
Federal question jurisdiction
12. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).
Exempt securities and transactions
Pretexting
Federal Information Act
Nonexpertized portions
13. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)
National Environmental Policy Act (NEPA)
Executed exchange
Legal capacity
Inadequate warning defect`
14. The written set of charges against the defendant - which is presented to a grand jury.
Scienter
Indictment
Pre-existing duty
Uniform Laws
15. Not discriminating against foreign product - thereby treating all products within their border equally
National Treatment
Chapter 7 of the Code
Undue influence
10-K
16. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action
'Blue sky' laws
'Takings'
Verdict
Collective bargaining
17. The right to hold a security interest on a debtor's property.
Lien
'Mailbox' rule
Section 11 of the Securities Act
Motion
18. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.
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19. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage
Civil Law or Code Law
Rules of interpretation of a contract by a court
Procedural unconscionability
Superfund
20. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts
Option contract
General jurisdiction
Affirm or disaffirm
Truth in Lending Act
21. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.
Appellant
'Takings'
Joint obligation
Material breach
22. When the creditor initiates the proceedings.
Involuntary proceeding
Termination of an invitation to make an offer
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Security agreement
23. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading
Employment law
Misappropriation theory
Statutory Seller
Affirm or disaffirm
24. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer
Revocation
Standing
Subjective intent
Assignment of rights
25. Revocability relates to situations when an assignment can be taken away from the assignee. When an assignment is supported by consideration - it irrevocable - and vice-versa. If an assignment is irrevocable - then the assignor does not have the right
Expertised portion
Unjust enrichment
Revocability
Obligee
26. Words or actions an individual may have intended - but did not communicate
Subjective intent
Priority of secured transactions
Equal protection
Federal Trade Commission (FTC)
27. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions
Environmental Protection Agency
Implied contracts
Rules of construction
Security agreement
28. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry
Remand
The Family and Medical Leave Act
Sherman Act
Occupational Safety and Health Act
29. The belief that the corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders. However - laws do not impose this obligation/responsibility
Diminution in value
Social entity or stakeholder theory of the corporation
Unilateral mistake
Perfected
30. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.
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31. When the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.
Procedural unconscionability
Tie-in agreement
Utilitarianism
Investment contracts
32. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o
Incidental beneficiary
Pre-existing duty
Excuse of condition
Model Rules of Professional Conduct
33. Judges that belong to an administrative agency - to which claims regarding administrative agency rules are brought to.
Rule 147 of the Securities Act
Per se
Environmental Protection Agency
Administrative law judges
34. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting
Retraction
Legal detriment
Proxy
Reliance damages
35. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice
Unconscionability
Contracts that prohibit assignment
Quasi-contract
Federal district court
36. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.
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37. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.
Unilateral rescission
Plaintiff
Unemployment compensation laws
Contract
38. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.
Goods
Implied contracts
Fair Labor Standards Act (FLSA)
Design defect
39. 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
Substantive unconscionability
National Institute for Occupational Health
Automatic stay
Demand assurance
40. 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
Trial court
Reporting company
Personal jurisdiction
Bilateral contract
41. Protection of communications between an attorney and her client. Neither party is compelled to disclose such communications to the court. Only the client can waive the privilege.
'in pari delicto'
Attorney/client privilege
Intended beneficiary
'clear and present'
42. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.
Exchange Act Regulations
Federal district court
Rational basis test
Rule 505 of Regulation D of the Securities Act
43. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t
Section 7A of the Clayton Act
Resource Conservation and Recovery Act
Condition concurrent
Pregnancy Discrimination ACt
44. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.
Clean Water Act
Injunction
Preponderance of evidence
Occupational Safety and Health Act
45. Regulates radio - television - and other forms of interstate communications
Civil Law
Federal Communications Commission
Exempt securities and transactions
Preponderance of evidence
46. The US appeals or appelate court. If a party appeals the district court's decision - it can be brought to the federal court of appeals or the federal court of appeals. It has appellate jurisdiction.
Federal circuit court of appeals and the federal court of appeals
Novation
Foreclosure
Material breach
47. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.
Exempt securities and transactions
Demurrer
Exchange Act Regulations
Collective bargaining
48. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)
Market division
Economic waste
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Procedural unconscionability
49. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.
Federal Rules of Civil Procedures
When an assignment becomes void
Illusory promise
Rule 506 of Regulation D of the Securities Act
50. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare
'de nuvo'
Motion of directed verdict or of dismissal
Fraud
Suspect classification