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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. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






2. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed






3. 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.






4. 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.






5. 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






6. When a party unlawfully indicate that he will not perform when the performance is due.






7. 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






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






9. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres

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10. 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.






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






12. 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






13. When there is no bargained-for exchange - because there is no exchange.






14. An order from the court to perform the contract pursuant of its terms. This is only does when the damage remedy is inadequate and the equitable need for such performance outweighs the burden of supervision and harm to the defendant.






15. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






16. 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






17. A condition that occurs at the same time as performance






18. 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






19. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.






20. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for






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






22. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






23. 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






24. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.






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






26. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






27. Legally recognized injury






28. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






29. 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






30. 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






31. 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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32. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






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






34. 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






35. 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.






36. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






37. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






38. 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.






39. 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.






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






41. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.






42. Prohibits institutions from discrimination related to credit applications






43. The property that is the subject of a security interest






44. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.






45. Oversees the purchase and sale of securities






46. The first court to consider an action






47. Words or actions an individual may have intended - but did not communicate






48. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s

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49. 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.






50. Agreements between buyers and sellers - price-related agreements are per se illegal. Such agreements require court scrutiny based on the rule of reason in order to be held illegal.