Test your basic knowledge |

CLEP Introductory Business Law

Subjects : clep, law, business-law
  • 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. 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

2. The power of the Supreme Court to review federal or state law as constitutional or not. It is the result of the 'Marbury v Madison' case.

3. 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.

4. 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.

5. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe

6. It is a document containing information that must be delivered to investors prior to their securities' purchase. It is designed to contain all the information that an investor needs to evaluate the security and risk associated with purchasing the sec

7. Obtaining consumer's private financial information under false pretenses

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

9. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.

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

11. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o

12. In some contracts - the parties will stipulate the amount of damages to be awarded upon a breach. The courts will award such amount if the damages were difficult to determine at the time the contract was written - the stipulated amount is a reason fo

13. Laws created by city councils or county boards - aimed at local matters

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

15. 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

16. Manages the nation's social security system

17. 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

18. The agreement to create a security interest

19. Oversees the purchase and sale of securities

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

21. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable

22. When both parties agree to rescind the contract

23. 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.

24. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -

25. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

26. Administers federal labor laws

27. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.

28. This takes place when a crime has been committed against the state. In this case - there is a prosecution - which writes an indictment and sends it to the grand jury. If the grand jury decides that there is sufficient evidence - it will return the pr

29. Punitive damage - non-economic damages - and attorneys' fees

30. It represents notice that a lawsuit has been filed against the defendant

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

32. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen

33. 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'

34. The difference between the value of the property as substantially complete and the value of the property upon full performance

35. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).

36. 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

37. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices

38. 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.

39. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental

40. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report

41. 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'

42. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed

43. Treaties between two nations addressing investment concerns

44. Misrepresentation that was made with intent

45. An intent to deceive or defraud

46. The promisor's failure to perform in accordance with the terms of the contract

47. A contract that is made where two promises are outstanding.

48. 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

49. Oversees implementation of this benefit program of the Social Security Act

50. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.