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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. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t
Other constituency statutes
Environmental Protection Agency (EPA)
Section 7A of the Clayton Act
Horizontal agreement
2. A company subject to the Exchange Act
Reporting company
Uniform Laws
Bargained-for-exchange
Standing
3. 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'
Informed consent
Federal Insurance Contributions Act
Creditor beneficiary
Group boycotts
4. This is when the appellate court send the case back to the lower court for a new trial.
Utilitarianism
Defined contribution plan
Federal circuit court of appeals and the federal court of appeals
Remand
5. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)
Clean Air Act
Federal circuit court of appeals and the federal court of appeals
Production quotas
Occupational Safety and Health Administration (OSHA)
6. 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)
Duties that cannot be delegated
Occupational Safety and Health Administration (OSHA)
Suspect classification
Option contract
7. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.
Federal Insurance Contributions Act
Section 5 of the Securities Act
'Past consideration'
Employee Retirement Income Security Act (ERISA)
8. 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
Mutual assent
Quasi-suspect classification
Employee Retirement Income Security Act (ERISA)
Judgment n.o.v.
9. The agreement to create a security interest
Production quotas
Rule 505 of Regulation D of the Securities Act
Security agreement
Illusory promise
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
Resource Conservation and Recovery Act
Motion of directed verdict or of dismissal
Subject matter jurisdiction
'meeting of the minds'
11. 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
Foreclosure
Performance
Attachment
Sherman Act
12. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.
Motion to strike
Federal Information Act
Restatement (Second) of Contracts
Condition concurrent
13. The promisor's failure to perform in accordance with the terms of the contract
Clean Air Act
Common Law
Breach
Pension Benefit Guaranty Corporation (PBGC)
14. Created through the Occupational Safety and Health Ac. It is federal administrative agency that works with employers and employees to ensure compliance with workplace safety standards. It requires employers to maintain information on employee acciden
Occupational Safety and Health Administration (OSHA)
Environmental Protection Agency
Incidental beneficiary
Statute of limitations
15. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con
Securities and Exchange Commission
Supreme Court powers
Subjective intent
Perfected
16. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state
Counteroffer
Model Rules of Professional Conduct
Security agreement
Procedural unconscionability
17. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices
Promisor's rights (in relation to the beneficiary)
Clayton Act
Fair Debt Collection Act
Gratuitous assignment
18. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws
Condition precedent
Contract law
Securities and Exchange Commission
Federal Information Act
19. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'
Duress
Pre-existing duty
Reliance
Offer
20. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.
Exchange Act Regulations
Americans with Disabilities Act (ADA)
Title VII of the Civil Rights Act of 1964
Rule 12b (6) motion
21. A party's damage award will be reduced by any loss he did or could have avoided.
Duty to mitigate
Tender offers
Reliance
Age Discrimination in Employment Act (ADEA)
22. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.
23. 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.
Res judicata
Subjective intent
Petit jury
Equal Pay Act (EPA)
24. 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
Title VII of the Civil Rights Act of 1964
Assignor
Consumer protection
Lien
25. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.
Federal Environmental Pesticide Control Act
Restitution and rescission
Materiality
Foreclosure
26. Previous decisions made by decisions - by which the current judges must abide by.
Injunction
Appellant
Precedent
Federal Trade Commission (FTC)
27. An order prohibiting a party from engaging in certain conduct. A count will only issue an injunction if the damage remedy is inadequate and the injunction is necessary to prevent irreparable harm to the non-breaching party.
Injunction
'de nuvo'
Federal circuit court of appeals and the federal court of appeals
Rule 144 of the Securities Act
28. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.
Equal Employment Opportunity Commission (EEOC)
Administrative Procedure Act
Secured transaction
Joint obligation
29. 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)
Uniform Laws
Creditor beneficiary
Federal Trade Commission (FTC)
Federal Trade Commission
30. 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
Domicile
Chapter 11 of the Code
Expectation damages (also known as the 'benefit of the bargain')
Informed consent
31. 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
Contract with intoxicated persons
Misappropriation theory
Res ipsa loquitor
Adhesion
32. 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
Trust
Rule 12b (6) motion
Joint obligation
33. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.
'Infants' or 'minors'
Equal protection
Equal Pay Act (EPA)
Complete or total integration
34. 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
Implied contracts
Companies that are subject to the exchange act (Reporting companies)
Option contract
Defenses against liability of misrepresentations or omissions
35. Legally recognized injury
Rule 505 of Regulation D of the Securities Act
Res judicata
Injury-in-fact
Civil liability
36. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.
37. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.
Federal district court
Remediation
Perfected
Regulation D of the Securities Act
38. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.
39. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...
Per se
Judgment n.o.v.
General Agreement on Tariffs and Trades
Misrepresentation
40. 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
Post-trial motions
Foreign Sovereign Immunities Act
Quasi-contract
Pension Benefit Guaranty Corporation (PBGC)
41. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible
Section 701 of the Securities Act
Design defect
Examples of Uniform Laws
Prosecution
42. When a control makes a profit purchasing and selling her shares within a six-month period
Truth in Lending Act
Short swing profits
Equity of redemption
Section 12(a)(2)
43. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations
Consideration
Option contract
Employment law
Anticipatory repudiation
44. 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.
Federal circuit court of appeals and the federal court of appeals
Equity of redemption
Defenses against liability of misrepresentations or omissions
Enabling acts
45. 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.'
Securities Act
Specialized federal courts
Assignment of rights
Equal Employment Opportunity Commission (EEOC)
46. 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.
Per se
Chapter 13 of the Code
Accredited investor
National Institute for Occupational Health
47. A perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio
Criminal Trial
Fair Credit Reporting Act
Priority of secured transactions
Federal question jurisdiction
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
Lien
Production quotas
Unconscionability
Control persons
49. Offering made to purchase all or a portion of the shares of a specific company
Levels of courts
Securities Exchange Act of 1934
Tender offers
Original jurisdiction
50. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.
Bilateral contract
Investment contracts
Rules of construction
Specific performance