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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. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor






2. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






3. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.






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






5. Enacted in 1969 to protect the environment from the actions of public or private actors. It declared a policy and promoted efforts to prevent or eliminate environmental damage. It also ensures that public and private actors better understand the ecol






6. 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






7. 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






8. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






9. A misrepresentation made with knowledge of its inaccuracy






10. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






11. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






12. They represent the amount of money a party has spent in justifiable reliance on a contract.






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






14. Automatic violations of the Sherman Act






15. Oversees the purchase and sale of securities






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






17. 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.






18. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






19. An anti-discrimination law that prohibits employment discrimination based on race - color - religion - sex - and national origin. This prohibits discrimination in hiring - firing - recruiting - and compensation. Prohibit sexual harassment or requesti






20. 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.






21. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






22. Prevents discrimination against employees who are 40years old or more






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






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






25. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






26. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






27. Seeks to promote market economics and democratic governments






28. The person to extends credit or a loan - and hence the person to whom a debt is owed






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






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






31. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






32. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






33. The principle used by courts when both parties are equally guilty of illegality - or when the party seeking restitution is more at fault than the other party

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34. The person to whom the right is assigned






35. 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.






36. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






37. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






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






39. 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






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






41. A person who is not an intended beneficiary






42. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.






43. A trivial defect in performance (the opposite of material breach).






44. A situation where one person unfairly benefits from a transaction






45. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






46. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches

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47. 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






48. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






49. An exemption for transactions involving offerings to employees.






50. It is the period in which a person may bring her claim. A contract becomes unenforceable after the statute of limitations has expired. A new contract must be created