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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. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).






2. One party made a mistake - the mistake concerns a basic assumption on which the contract was made that has a material impact on performance - the party seeking to avoid performance has not assumed the risk of the mistake - and equities favor avoidanc






3. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).






4. Oversees the purchase and sale of securities






5. 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






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






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






8. Regulates air and water pollution as well as address problems associated with certain toxic substances






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






10. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






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






12. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






13. The creditor's security interest in real property






14. 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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15. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion






16. 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.






17. Laws created by city councils or county boards - aimed at local matters






18. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






19. The written set of charges against the defendant - which is presented to a grand jury.






20. Prohibits differences in wages based on the gender of men and women who perform substantially same work.






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






22. The agreement to create a security interest






23. 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






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






25. Automatic violations of the Sherman Act






26. A party's damage award will be reduced by any loss he did or could have avoided.






27. Directors - certain officers - and owners






28. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






29. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o






30. An exemption for certain small offerings






31. 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.






32. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






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






34. 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)






35. 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






36. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






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






38. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






39. One of the primary federal federal statutes






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






41. A motion claiming that the plaintiff has not established enough evidence to prove her case. The motion can be made by the defendant when the plaintiff has finished completed presenting the case.






42. Not discriminating against foreign product - thereby treating all products within their border equally






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






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






45. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






46. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)






47. It represents the defendant's request for a new proceeding to determine if he is being unlawfully deprived of his liberty. It is limited to people in custody. It can only be used after all other methods have been exhausted.






48. Place of permanent residence






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






50. Consent after the lawyer has adequately informed the client about the conflict and not only has explained to her the material risk associated with the conflict but also has made available her reasonable alternatives to the proposed conflict