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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 documents that parties file in connection with their lawsuit






2. 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)






3. An exemption for certain small offerings






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






5. 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.'






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






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






8. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






9. 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






10. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






11. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.






12. It represents the defendant's request for a new proceeding to determine if he is being unlawfully deprived of his liberty. It is limited to people in custody. It can only be used after all other methods have been exhausted.






13. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






14. It regulates chemical substances






15. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.






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






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






18. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.






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






20. 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.






21. An agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money. In the event of a default - the security interest allows the creditor to take possession of the property/asset in order to






22. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






23. A perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio






24. 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






25. The person to whom the right is assigned






26. When a control makes a profit purchasing and selling her shares within a six-month period






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






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






29. It is a promise stated in words - either oral or written.






30. 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.






31. It is a pre-trial motion to take out certain matters






32. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






33. 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.






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






35. Potential responsibility for payment of damages or other court - ordered enforcement as a result of a ruling in a lawsuit. Civil liability is not the same as criminal liability - which means 'open to punishment for a crime.'






36. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.






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






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






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






40. Duties that involve some personal service or skill or that would materially change the obligor's expectancy under the contract may not be delegated without the obligee's consent. When a contract prohibit assignment - then it also cannot be delegated.






41. 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






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






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






44. 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






45. 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






46. 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.






47. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches






48. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






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






50. 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