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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. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






2. 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






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






4. Negative causation - due diligence defense - ...






5. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor






6. Regulates the handling of the pesticides being exported from and imported into the U.S.






7. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.






8. 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


9. 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






10. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






11. 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






12. 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






13. 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.






14. When both parties are mistaken - the mistake concerns a basic assumption on which the contract was made that has material impact on performance - and the party seeking to avoid performance has not assumed the risk of the mistake. Contract is voidable






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






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






17. The proceeding for a supervised reorganization of the debtor's business. The debtor must present a plan of reorganization to the bankruptcy court. After 120 days - creditors have the right to present competing plans. The court makes the final determi






18. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






19. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






20. 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






21. Oversees the purchase and sale of securities






22. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion






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






24. It represents a request for the court to take some action. A motion can be filed by a defendant.






25. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo






26. 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






27. Laws created by city councils or county boards - aimed at local matters






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






29. Enables debtors to create a repayment plan for certain debts - while still retaining their assets.






30. Regulates trusts and monopolies






31. This takes place when a crime has been committed against the state. In this case - there is a prosecution - which writes an indictment and sends it to the grand jury. If the grand jury decides that there is sufficient evidence - it will return the pr






32. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan






33. The promisor's failure to perform in accordance with the terms of the contract






34. The first court to consider an action






35. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






36. The creditor's security interest in real property






37. The person who is bringing the suit






38. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres


39. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






40. The party seeking to appeal the previous court's decision






41. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






42. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






43. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend






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






45. 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






46. Oversees implementation of this benefit program of the Social Security Act






47. Prevents discrimination against employees who are 40years old or more






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






49. A person who is not an intended beneficiary






50. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards