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Test your basic knowledge |
CLEP Introductory Business Law
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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. 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
Express contract
Statute of limitations
10-K
'due process'
2. A situation where one person unfairly benefits from a transaction
Breach
Proxy
Unjust enrichment
Misappropriation theory
3. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.
Rule 506 of Regulation D of the Securities Act
Malpractice
Exempt securities and transactions
Writ of certiorari
4. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize
Objective standard
Substitutes of consideration
Penalty
Manufacturing defect
5. 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.
Specialized federal courts
Securities Act
Diversity jurisdiction
Petit jury
6. 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.
Accredited investor
'in pari delicto'
Section 10(b) and Rule 10b-5 of the Exchange Act
Any statutory seller
7. 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.
Quasi-suspect classification
Rule 144 of the Securities Act
Securities and Exchange Commission
Termination of an invitation to make an offer
8. Directors - certain officers - and owners
'Infants' or 'minors'
Quasi-contract
Control persons
Express contract
9. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws
Inadequate warning defect`
National Labor Relations Board (NLRB)
Bilateral Investment Treaty program
Bilateral investment treaties
10. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.
Implied terms
Incidental beneficiary
Jurisdiction
Expropriation
11. 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
The Council on Environmental Quality
Companies that are subject to the exchange act (Reporting companies)
Unilateral mistake
Breach
12. This is when the appellate court send the case back to the lower court for a new trial.
Title VII of the Civil Rights Act of 1964
Remand
Intended beneficiaries of government contract
Suspect classification
13. Regulates trusts and monopolies
Fair Credit Reporting Act
Domicile
Contract law
Federal Trade Commission
14. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.
Donee beneficiary
Contracts that prohibit assignment
Implied contract
Attachment
15. A party's damage award will be reduced by any loss he did or could have avoided.
Duty to mitigate
Proxy
Title VII of the Civil Rights Act of 1964
Restatement (Second) of Contracts
16. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.
'Quid pro quo'
General jurisdiction
Federal Rules of Civil Procedures
Trial court
17. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.
Direct damages
Equal protection
Novation
Section 10(b) and Rule 10b-5 of the Exchange Act
18. Regulates air and water pollution as well as address problems associated with certain toxic substances
'Infants' or 'minors'
Precedent
Environmental Protection Agency
Civil Law or Code Law
19. A current report required by the Exchange Act
8-K
Changed circumstances that allow a party to be excused from performance under the contract
'Past consideration'
Excuse of condition
20. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations
Employment law
10-Q
Objective standard
Motion of directed verdict or of dismissal
21. A group of between 16 and 23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime. A grand jury is required in the 5th Amendment for all criminal cases. The grand jury has the power to subpoena witnesses and doc
Subject matter jurisdiction
Treaties authority
Grand jury
Mutual rescission
22. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country
Direct damages
Foreign Corrupt Practices Act
Section 7A of the Clayton Act
Revocation
23. An exemption for certain small offerings
Intended beneficiary
Uniform Laws
Regulation A of the Securities Act
Commercial speech
24. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.
Verdict
Employment discrimination
Illusory promise
Scienter
25. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.
Fraud
Restatement (Second) of Contracts
Scienter
Unconscionability
26. Administers federal labor laws
Mutual mistake
Reporting company
National Labor Relations Board
Foreign Corrupt Practices Act
27. Actual performance of an obligation
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Satisfaction
Unconscionability
Complete or total integration
28. 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'
Section 12(a)(2)
Creditor beneficiary
Pregnancy Discrimination ACt
Secured transaction
29. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).
Anticipatory repudiation
Intended beneficiary
Multilateral treaties
Federal Information Act
30. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.
Section 11 of the Securities Act
Statutory Seller
Federal Trade Commission
Grand jury
31. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.
32. 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
Commencing a lawsuit
National Environmental Policy Act (NEPA)
Fair Credit Reporting Act
Reliance
33. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)
Rule of reason
Procedural unconscionability
Effect of delegation
Motion
34. Inadequate warning of danger - which can be construed as a design defect
Inadequate warning defect`
Promisee's rights
Process of assignment
Collateral
35. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im
Contract law
Pretexting
Pre-existing duty
Quasi-suspect classification
36. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety
Trademark
Charitable contributions
Affirmative defenses
Strict liability
37. 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.
Diversity jurisdiction
Criminal Trial
Criminal Law
Control persons
38. The party seeking to appeal the previous court's decision
United States Bankruptcy Code ('Code')
Counterclaims
'Blue sky' laws
Appellant
39. It focuses on the clean up of abandoned or historical hazardous waste sites - for which it established a 'Superfund'. The EPA (Environmental Protection Agency) identifies particularly egregious sites and places them on a National Priorities List. The
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Delegation
Taking a contract 'out of the Statute of Frauds'
Attorney/client privilege
40. The difference between the value of the property as substantially complete and the value of the property upon full performance
Diminution in value
Uniform Laws
Obligee
Design defect
41. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.
Novation
Fair Labor Standards Act (FLSA)
Complete or total integration
Deontological
42. A company subject to the Exchange Act
Reporting company
Investment contracts
Ordinances
'Takings'
43. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)
Civil Law
Rule 504 of Regulation D of the Securities Act
Appellate jurisdiction
Assignee's rights
44. The person to extends credit or a loan - and hence the person to whom a debt is owed
Beneficiary's rights
Remand
Creditor
Rational basis test
45. 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
Parol Evidence Rule
The Social Security Administration
'Takings'
Export Administration Regulations (EAR)
46. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...
Expropriation
Section 12 (a)(1) of the Securities Act
Inadequate warning defect`
General Agreement on Tariffs and Trades
47. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls
Bona fide occupational qualification
Export Administration Regulations (EAR)
Revocation
Chapter 13 of the Code
48. Both a rejection and termination of the original offer.
Writ of certiorari
Counteroffer
Injury-in-fact
Common Law
49. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of
Sham consideration
Contracts that prohibit assignment
Scienter
Common Law
50. 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
Statutory Seller
Original jurisdiction
Liquidated damages clause
Securities