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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. This is when an assignment is not supported by consideration and is revocable. It will only become irrevocable when (a) the obligor has performed her obligations to the assignee - (b) the assignor delivers the assignment in writing to the assignee -






2. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -






3. This is when the appellate court send the case back to the lower court for a new trial.






4. 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






5. An exemption for securities sold outside of the U.S.






6. It is an action to avoid unjust enrichment.






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






8. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






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






10. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.






11. 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






12. 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






13. Administers federal labor laws






14. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






15. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.

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16. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.






17. A condition that cuts off a pre-existing duty






18. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.






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






20. A company becomes a 'public company' when it issues its securities pursuant to this registration process.






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






22. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d






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






24. An annual report required by the Exchange Act






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






26. 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.






27. One of the primary federal federal statutes






28. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for






29. An exemption for transactions involving offerings to employees.






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






31. A supervening stature makes a contract illegal - and thereby makes performance impossible






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






33. 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.






34. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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35. After taking the case to the federal district court - the party has the right to appeal to the federal circuit court of appeals. there are twelve federal appeals courts that hear cases from several different district courts within a specific geograph






36. 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






37. When the jury retires to a separate room to decide the outcome of the case.






38. Rules of ethics that govern the practice of law and the conduct of lawyers






39. 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.






40. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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41. 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






42. Oversees the purchase and sale of securities






43. 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






44. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t






45. A body of rules and system based on the decisions that judges have made in the past about such cases. It originated in England. In the late 1700s - Sir William Blackstone published 'Commentaries on the Law of England' - which provides the most compre






46. Treaties between two nations addressing investment concerns






47. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






48. Ethical behavior in terms of its consequences ('the end justifies the means')






49. 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






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







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