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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. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






2. 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






3. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






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






5. The primary doctrine used to substitute for consideration is promissory estoppel or detrimental reliance. Under that doctrine - a promise will be enforced without consideration under the following conditions: (a) The promisor should reasonably expect






6. 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






7. Protection of communications between an attorney and her client. Neither party is compelled to disclose such communications to the court. Only the client can waive the privilege.






8. Potential responsibility for payment of damages or other court - ordered enforcement as a result of a ruling in a lawsuit. Civil liability is not the same as criminal liability - which means 'open to punishment for a crime.'






9. A current report required by the Exchange Act






10. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






11. Actual performance of an obligation






12. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e






13. 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.






14. Regulates trusts and monopolies






15. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired






16. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.






17. 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.






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






19. 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.






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






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






22. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






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






24. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






25. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.






26. 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






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






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






29. Ensures fair disclosure of credit terms - thereby protecting consumers from inaccurate and unfair billing and credit card practices






30. A beneficiary's rights vest when she (a) manifests her assent to the contract - (b) brings suit to enforce the contract - or (c) materially changes her position justifiable reliance on the contract. Once the beneficiary's rights have vested - the con

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31. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






32. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.






33. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd






34. 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.






35. 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






36. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






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






38. 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






39. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen






40. An exemption for transactions involving offerings to employees.






41. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section






42. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






43. Discrimination based on race or sex






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






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






46. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






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






48. Directors - certain officers - and owners






49. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -






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