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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. A misrepresentation made with knowledge of its inaccuracy






2. 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






3. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






4. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






5. 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)






6. 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






7. 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






8. Manages the nation's social security system






9. Torts and contracts... represents law that regulates the relationships between parties.






10. The exchange of promises or an exchange of a promise for a performance.






11. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






12. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






13. Any party bringing suit must have standing (the legal right to bring the suit). The plaintiff files a complaint with the trial court setting for the basis of his lawsuit. The court must then issue to the defendant a copy of the complaint and a summon






14. 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.






15. The creditor's right to take possession of the property is called foreclosure






16. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






17. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






18. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.






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






20. He has the enforceable right against the obligor because he is considered the real party interest.

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21. Defenses that would prevent the plaintiff from holding the defendant liable






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






23. The agreement to create a security interest






24. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






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






26. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






27. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






28. 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.






29. This regulate the discharge of pollutants into the water. It authorizes the EPA (Environmental Protection Agency) to determine the permissible levels of contaminants in the water to ensure a safe water supply - and to set standards aimed at meeting t






30. 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






31. Contracts that are formed for the intended benefit of some third party.






32. An intent to deceive or defraud






33. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






34. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

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






36. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.






37. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).






38. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






39. 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.






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






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






42. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






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






44. 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






45. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.






46. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)






47. An assertion that is not in accord with the facts. A contract becomes voidable when it is shown that a misrepresentation was made - it was material - and the party seeking avoidance reasonably relied on it.






48. When a party unlawfully indicate that he will not perform when the performance is due.






49. (an exception to Title VII) Discrimination is permitted because of the occupation qualifications






50. An exemption for offerings that occur primarily within one state.