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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. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.






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






3. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






4. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






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






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






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






8. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






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






10. A condition that occurs at the same time as performance






11. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






12. The documents that parties file in connection with their lawsuit






13. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.






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






15. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)






16. The person who assigns her rights






17. 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.






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






19. Securities issued by the federal government - state governments - or any of their subdivision; securities issued by a charitable organization; issued by banks or saving or loan institutions - issued by a receiver or trustee in bankruptcy;. issued wit






20. Claims that the defendant has against the plaintiff






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






22. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






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






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






25. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






26. Revocability relates to situations when an assignment can be taken away from the assignee. When an assignment is supported by consideration - it irrevocable - and vice-versa. If an assignment is irrevocable - then the assignor does not have the right






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






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






29. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd






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






31. 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






32. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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33. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






34. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

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35. 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'.






36. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






37. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






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






39. Prohibits institutions from discrimination related to credit applications






40. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)






41. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable






42. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






43. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






44. 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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45. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions






46. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach






47. 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






48. Place of permanent residence






49. An exemption for certain small offerings






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