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CLEP Introductory Business Law

Subjects : clep, law, business-law
  • Answer 50 questions in 15 minutes.
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  • 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. 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.

2. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws

3. Both a rejection and termination of the original offer.

4. Laws that states have passed that aim at regulating securities transactions within their states.

5. 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

6. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).

7. Manages the nation's social security system

8. 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'

9. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.

10. The written set of charges against the defendant - which is presented to a grand jury.

11. 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.).

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

13. 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

14. Constitutes conduct that improper or unethical. A tort action of negligence against lawyers for failing to satisfy their professional duty of care owed to their clients.

15. 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

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

17. The right of both parties to gain information concerning the other party and her witnesses.

18. The obligor does not need to provide consent - but does need to be given notice.

19. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship

20. 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

21. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.

22. 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.

23. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c

24. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)

25. A writ of certiorari is granted by the Supreme Court to a party appeal that they have decided to hear. It requires that four of the nine justice agree to hear the case. The majority of cases appealing to the Supreme Court are denied a writ of certior

26. They represent the amount of money a party has spent in justifiable reliance on a contract.

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

28. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.

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

30. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.

31. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in

32. 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.'

33. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.

34. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration

35. Employers make payments to retired employees based on the length of their employment and the wages they received.

36. One of the primary federal federal statutes

37. 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

38. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section

39. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.

40. The property that is the subject of a security interest

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

42. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.

43. The creditor's security interest in real property

44. The person being sued

45. 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

46. Provides specific (3) categories for exemption: Rule 504 - 505 - 506

47. The party that won in the previous court trial - but the other party is appealing the decision.

48. 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.

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

50. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer