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CLEP Introductory Business Law

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. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.






2. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.






3. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






4. Regulates trusts and monopolies






5. Establishes certain rules for the proper resale - including the requirement that such securities must be held for at least one year - and sold through a broker in a transaction that involves a limited percentage of securities.






6. Regulates the handling of the pesticides being exported from and imported into the U.S.






7. Judges that belong to an administrative agency - to which claims regarding administrative agency rules are brought to.






8. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






9. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






10. The person being sued






11. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






12. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






13. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






14. The right to hold a security interest on a debtor's property.






15. A promise that is inferred from a person's conduct or the circumstances of the transaction






16. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






17. An intent to deceive or defraud






18. An interest in property or collateral granted in order to ensure payment of a debt or obligation






19. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






20. When the debtor voluntarily initiates the bankruptcy proceedings






21. The person who assigns her rights






22. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years






23. 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






24. A creditor that does not have a security interest in any of the debtor's property or assets.






25. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






26. 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'.






27. It is an action to avoid unjust enrichment.






28. A trust formed to dominate an industry






29. Inadequate warning of danger - which can be construed as a design defect






30. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting






31. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






32. Consideration means that there must be a bargained-for-exchange - and the promisee must incur some legal detriment. Consideration is necessary for a person seeking to enforce a contract. Courts generally do not evaluate the adequacy of the considerat






33. 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






34. 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.






35. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.






36. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration






37. Establishes that federal and state courts do not have jurisdiction over cases against a foreign nation. Immunity ends if the commercial activity occurred in the US - actions in the US based on commercial activities abroad - or commercial activities a






38. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






39. Obtaining consumer's private financial information under false pretenses






40. They represent losses that result from other transactions that are dependent upon the breached contract






41. The person who is bringing the suit






42. When the creditor initiates the proceedings.






43. Claims that the defendant has against the plaintiff






44. If the promisor substantially performs under teh contract






45. It represents a request for the court to take some action. A motion can be filed by a defendant.






46. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other






47. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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48. This involves filing a registration statement with the SEC - which contains information about the securities to be registered as well as the company that is issuing the security. Included within the registration statement is a prospectus






49. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






50. 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