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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. 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.






2. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






3. The obligee who officially assigned over his rights






4. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'






5. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






6. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable






7. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.






8. 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






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






10. An annual report required by the Exchange Act






11. 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






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






13. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






14. 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






15. The party that won in the previous court trial - but the other party is appealing the decision.






16. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






17. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'






18. 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.






19. 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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20. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo






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






22. Treaties entered into between two nations






23. Offering made to purchase all or a portion of the shares of a specific company






24. He can raise any defense against the assignee that she would have been able to raise against the assignor. This is the right to offset the assignee's claim - and thus the assignee cannot be held directly liable to the assignor for the improper action

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25. The difference between the value of the property as substantially complete and the value of the property upon full performance






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






27. An intent to deceive or defraud






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






29. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






30. Claims that the defendant has against the plaintiff






31. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






32. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






33. Torts and contracts... represents law that regulates the relationships between parties.






34. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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35. The creditor's security interest in real property






36. 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.






37. 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.






38. Employers make payments to retired employees based on the length of their employment and the wages they received.






39. When the plaintiff's damages were caused by something other than the misrepresentation or omission






40. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






41. When the creditor initiates the proceedings.






42. 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






43. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.

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






45. When a control makes a profit purchasing and selling her shares within a six-month period






46. A current report required by the Exchange Act






47. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).






48. 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






49. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






50. 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