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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. 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






2. Prohibits institutions from discrimination related to credit applications






3. The creditor's security interest in real property






4. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






5. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






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. 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.






8. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.






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






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






11. Regulates radio - television - and other forms of interstate communications






12. When the debtor voluntarily initiates the bankruptcy proceedings






13. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior






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






15. They are the 'Federal Rules' that govern the procedures for filing a civil suit in federal cort. The states have adopted their own rules of procedures - but they generally are parallel to the federal rules.






16. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






17. 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






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






19. This involves filing a registration statement with the SEC - which contains information about the securities to be registered as well as the company that is issuing the security. Included within the registration statement is a prospectus






20. Not discriminating against foreign product - thereby treating all products within their border equally






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






22. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






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






24. 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.






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






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






27. Liability imposed on sellers and other for compensating people who have been injured as the result of defective product. Liability actions can be brought as tort or contract claims (breach of warranty).






28. 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 -






29. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou






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






31. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






32. 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

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






34. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






35. 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






36. 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






37. 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.






38. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time

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39. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






40. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






41. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e






42. 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






43. 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.).






44. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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45. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'






46. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






47. 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.






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






49. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






50. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country