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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 property as substantially complete and the value of the property upon full performance






2. The belief that the corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders. However - laws do not impose this obligation/responsibility






3. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.






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






5. 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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6. When the jury retires to a separate room to decide the outcome of the case.






7. 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.






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. Claims that the defendant has against the plaintiff






10. 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






11. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is






12. 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.






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






14. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






15. They represent losses that result from other transactions that are dependent upon the breached contract






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

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






18. 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

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19. Ethical behavior in terms of its consequences ('the end justifies the means')






20. 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.






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






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






23. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






24. Inadequate warning of danger - which can be construed as a design defect






25. 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.






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






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






28. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.






29. An anti-discrimination law that prohibits employment discrimination based on race - color - religion - sex - and national origin. This prohibits discrimination in hiring - firing - recruiting - and compensation. Prohibit sexual harassment or requesti






30. Previous decisions made by decisions - by which the current judges must abide by.






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






32. When a product is incorrectly manufactured that is unreasonably dangerous to consumers. To prove that 'unreasonably dangerous' - the show that an ordinary consumer would see it that way (consumer expectation test).






33. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)






34. 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






35. Laws that provides employees with compensation for a set period of time when they become unemployed through no fault of their own. It is a combined federal and state insurance program in which they both contribute money - along with the employers. Ea






36. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.

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37. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)






38. Misrepresentation that was made with intent






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






40. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

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






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






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






44. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






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






46. 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.






47. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






48. Contracts that are formed for the intended benefit of some third party.






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






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