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






2. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo






3. 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'






4. 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.






5. Administers federal labor laws






6. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






7. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






8. 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.






9. 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






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






11. Judges that belong to an administrative agency - to which claims regarding administrative agency rules are brought to.






12. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.






13. 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.






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






15. The principle used by courts when both parties are equally guilty of illegality - or when the party seeking restitution is more at fault than the other party

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






17. 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 -






18. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of






19. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.






20. Regulates air and water pollution as well as address problems associated with certain toxic substances






21. A supervening stature makes a contract illegal - and thereby makes performance impossible






22. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






23. A company subject to the Exchange Act






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






25. A pre-trial motion when the pleadings are vague or ambiguous.






26. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o






27. 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






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






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






30. The person being sued






31. Oversees the purchase and sale of securities






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






33. Ensures fair disclosure of credit terms - thereby protecting consumers from inaccurate and unfair billing and credit card practices






34. 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.'






35. A condition that cuts off a pre-existing duty






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






37. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).






38. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.






39. A beneficiary's rights vest when she (a) manifests her assent to the contract - (b) brings suit to enforce the contract - or (c) materially changes her position justifiable reliance on the contract. Once the beneficiary's rights have vested - the con

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40. 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






41. Ethical behavior is guided by duties or obligation. John Locke referred to these obligations as 'natural rights' that are natural - universal - and inalienable (as seen in the Declaration of Independence)






42. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






43. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover






44. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.






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






46. The creditor's right to take possession of the property is called foreclosure






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






48. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






49. 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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50. Claims that the defendant has against the plaintiff