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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. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.
Injury-in-fact
Appellant
Federal question jurisdiction
Exchange Act Regulations
2. When there is no bargained-for exchange - because there is no exchange.
Gift
Bilateral investment treaties
Beneficiary's rights
Regulation D of the Securities Act
3. Treaties entered into between two nations
Pension Benefit Guaranty Corporation (PBGC)
Duress
Bilateral treaties
Resource Conservation and Recovery Act
4. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)
Creditor
Counterclaims
Market division
Excuse of condition
5. Institutional investors - people with over a million dollars in net worth - venture capital firms - trusts with assets over $5 million - directors and executive officers of the issuing company - and other specified investors.
Exempt securities and transactions
Accredited investor
Preponderance of evidence
Exchange Act Regulations
6. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.
Securities Exchange Act of 1934
Pension Benefit Guaranty Corporation (PBGC)
Intended beneficiaries of government contract
Strict liability
7. Laws that provides employees with compensation for a set period of time when they become unemployed through no fault of their own. It is a combined federal and state insurance program in which they both contribute money - along with the employers. Ea
Unemployment compensation laws
Third party beneficiary
Security interest
Injunction
8. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting
Informed consent
Condition subsequent
Proxy
Securities and Exchange Commission
9. 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
Token consideration
Federal Rules of Civil Procedures
National Environmental Policy Act (NEPA)
Fair Credit Reporting Act
10. This is when the appellate court send the case back to the lower court for a new trial.
Misappropriation theory
Environmental Protection Agency
Remand
Liability based on intentional tort
11. 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
Employment law
Social entity or stakeholder theory of the corporation
Contract with intoxicated persons
Condition
12. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.
Condition
Rule 12b (6) motion
Promise
Scienter
13. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.
Social Security Administration
Breach
Incidental beneficiary
Restitution and rescission
14. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend
Monopoly
Prospectus
Unsecured creditor
Liability based on intentional tort
15. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.
Illusory promise
Intended beneficiaries of government contract
Obligor
Consumer protection
16. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.
Investment contracts
Taking a contract 'out of the Statute of Frauds'
Option contract
National Labor Relations Board (NLRB)
17. A contract that is made where two promises are outstanding.
Exempt securities and transactions
Quasi-suspect classification
Bilateral contract
Petit jury
18. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in
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19. A current report required by the Exchange Act
8-K
Private placement
Restitution
'due process'
20. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.
Consideration
Corporate social responsibility
Standing
'Takings'
21. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.
Securities Act
Age Discrimination in Employment Act (ADEA)
Joint obligation
Expectation damages (also known as the 'benefit of the bargain')
22. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions
Objective standard
Vertical agreements
Nonexpertized portions
Securities Act
23. The proceeding for a supervised reorganization of the debtor's business. The debtor must present a plan of reorganization to the bankruptcy court. After 120 days - creditors have the right to present competing plans. The court makes the final determi
Unemployment compensation laws
'in pari delicto'
Employee-at-will
Chapter 11 of the Code
24. Punitive damage - non-economic damages - and attorneys' fees
Intended beneficiary
Affirm or disaffirm
Non-recoverable damages
Jurisdiction
25. 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
Vesting of beneficiary's rights
Revocability
Liquidated damages clause
Substantive unconscionability
26. 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
Pleadings
Fair Credit Reporting Act
Concurrent conflict of interests
Section 7A of the Clayton Act
27. A person who is not an intended beneficiary
Consideration
Promisor's rights (in relation to the beneficiary)
Incidental beneficiary
Mortgage
28. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.
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29. 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'
Creditor beneficiary
Bureau of Customs and Border Protection
Any statutory seller
Specialized federal courts
30. A quarterly report required by the Exchange Act
10-Q
Implied contract
Res ipsa loquitor
Offer
31. Twelve members of jury that hear the evidence at the trial court. The Judge rules on the evidence and guides the jury on questions of law and proper rules of procedure.
Secured transaction
Petit jury
Equal protection
Plaintiff
32. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired
The Council on Environmental Quality
Regulation S of the Securities Act
Precedent
Fair Labor Standards Act (FLSA)
33. The right of both parties to gain information concerning the other party and her witnesses.
The Statute of Frauds
Grand jury
Condition
Discovery
34. Prohibits differences in wages based on the gender of men and women who perform substantially same work.
Attorney/client privilege
Equal Pay Act (EPA)
Counterclaims
Anticipatory repudiation
35. 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
National Labor Relations Board
Liability based on intentional tort
Express contract
Consideration
36. 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.
Consideration
Intended beneficiary
Who is liable
Misstatement or omission
37. If the promisor substantially performs under teh contract
Hung jury
Partial or trivial breach
Occupational Safety and Health Administration (OSHA)
Reliance
38. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.
United States Bankruptcy Code ('Code')
Option contract
Section 4 of the Securities Act
Section 5 of the Securities Act
39. The promisor can raise any defense against the beneficiary that he would have been able to raise against the promisee. The promisor cannot raise a defense against the beneficiary and the promisee.
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40. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.
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41. The creditor's right to take possession of the property is called foreclosure
Foreclosure
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Automatic stay
Condition concurrent
42. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.
Employee-at-will
Social entity or stakeholder theory of the corporation
Revocability
Employment discrimination
43. 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.
Rule 144 of the Securities Act
Consideration
Reliance damages
'Past consideration'
44. The person being sued
Defendant
Rule 505 of Regulation D of the Securities Act
Regulation D of the Securities Act
Inadequate warning defect`
45. When both parties are mistaken - the mistake concerns a basic assumption on which the contract was made that has material impact on performance - and the party seeking to avoid performance has not assumed the risk of the mistake. Contract is voidable
Mutual mistake
Bureau of Consumer Protection
Defined benefit plans
Vertical agreements
46. A writ of certiorari is granted by the Supreme Court to a party appeal that they have decided to hear. It requires that four of the nine justice agree to hear the case. The majority of cases appealing to the Supreme Court are denied a writ of certior
'Definite and certain'
Joint obligation
The Social Security Administration
Writ of certiorari
47. When the jury retires to a separate room to decide the outcome of the case.
Deliberation
Liquidated damages clause
Criminal Law
Bilateral Investment Treaty program
48. 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.
Trust
Exchange Act Regulations
Judicial review
Federal question jurisdiction
49. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)
Legal ethics
Domicile
Pleadings
Uniform Laws
50. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state
Concurrent conflict of interests
Regulation S of the Securities Act
Commercial speech
Model Rules of Professional Conduct