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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)
Lanham Act
Legal capacity
Pension Benefit Guaranty Corporation (PBGC)
Market division
2. 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'
Specific performance
Implied terms
Liquidated damages clause
Motion to strike
3. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept
Tie-in agreement
Shareholder primacy
Breach
The Social Security Administration
4. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.
Mental incapacity
Joint obligation
Subjective intent
Restitution
5. The property that is the subject of a security interest
Consequential damages
Defenses against liability of misrepresentations or omissions
Secured transaction
Collateral
6. The first court to consider an action
Attorney/client privilege
Original jurisdiction
Civil Law
Summons
7. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -
Bureau of Consumer Protection
Subject matter jurisdiction
Intended beneficiary
Product liability
8. If the promisor substantially performs under teh contract
Partial or trivial breach
Securities Exchange Act of 1934
Employment law
10-K
9. It regulates chemical substances
Security interest
Condition precedent
Toxic Substances Control Act
United States Bankruptcy Code ('Code')
10. 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
Federal Information Act
Concurrent conflict of interests
Pre-existing duty
Grand jury
11. Consideration means that there must be a bargained-for-exchange - and the promisee must incur some legal detriment. Consideration is necessary for a person seeking to enforce a contract. Courts generally do not evaluate the adequacy of the considerat
'Takings'
Restitution and rescission
Consideration
Duties that cannot be delegated
12. The difference between the value of the performance a party should have received and the value of the performance the party actually received.
Consideration
Civil liability
Direct damages
Process of assignment
13. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.
Equal Credit Opportunity Act
Rule 506 of Regulation D of the Securities Act
Beneficiary's rights
Subjective intent
14. 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
Promise
Inadequate warning defect`
Termination of an invitation to make an offer
Procedural unconscionability
15. 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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16. An exemption for securities sold outside of the U.S.
Chapter 11 of the Code
Foreign Corrupt Practices Act
Scienter
Regulation S of the Securities Act
17. When there is no bargained-for exchange - because there is no exchange.
Original jurisdiction
Other constituency statutes
Gift
Motion
18. 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'.
Superfund
Contracts that prohibit assignment
Contract
Civil Law or Code Law
19. 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
Unemployment compensation laws
Prospectus
Plaintiff
10-K
20. Prohibit mergers and acquisitions that may reduce competition or create a monopoly
Bilateral treaties
Reliance
Clayton Act
Rule 147 of the Securities Act
21. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im
Subject matter jurisdiction
Quasi-suspect classification
Section 4 of the Securities Act
Breach
22. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading
Beneficiary's rights
Demand assurance
Donee beneficiary
Misappropriation theory
23. Liability imposed on sellers and other for compensating people who have been injured as the result of defective product. Liability actions can be brought as tort or contract claims (breach of warranty).
Fair Labor Standards Act (FLSA)
Product liability
Inadequate warning defect`
Joint obligation
24. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t
The Council on Environmental Quality
Rule 147 of the Securities Act
Stare decisis
'clear and present'
25. Prohibits institutions from discrimination related to credit applications
Mutual rescission
Implied contract
Equal Credit Opportunity Act
Legal ethics
26. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.
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27. 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
Equal Employment Opportunity Commission (EEOC)
Contract with intoxicated persons
Intended beneficiaries of government contract
Reporting company
28. Treaties among several parties that seek to allocate rights and responsibilities among the parties
Multilateral treaties
'Quid pro quo'
Unilateral contract
Accord
29. An order from the court to perform the contract pursuant of its terms. This is only does when the damage remedy is inadequate and the equitable need for such performance outweighs the burden of supervision and harm to the defendant.
Specific performance
General Agreement on Tariffs and Trades
Employment law
Gift
30. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time
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31. A promise that is inferred from a person's conduct or the circumstances of the transaction
Implied contract
Uniform Commercial Code ('UCC')
Vesting of beneficiary's rights
Regulation D of the Securities Act
32. 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.
Procedural unconscionability
Securities and Exchange Commission
Consequentialism
Malpractice
33. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.
Judicial review
Unsecured creditor
Diminution in value
Demurrer
34. Provides specific (3) categories for exemption: Rule 504 - 505 - 506
10-Q
Rules of construction
'Mailbox' rule
Regulation D of the Securities Act
35. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.
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36. An exemption for offerings that occur primarily within one state.
Rule 147 of the Securities Act
Limited jurisdiction
National Labor Relations Act
Trademark
37. Ethical behavior in terms of its consequences ('the end justifies the means')
Consequentialism
Trust
Writ of habeas corpus
Legal capacity
38. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).
Social Security Act
Securities and Exchange Commission
Post-trial motions
Burden of proof
39. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor
National Labor Relations Act
Effect of delegation
Discovery
Precedent
40. He has the enforceable right against the obligor because he is considered the real party interest.
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41. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry
Subjective intent
Prosecution
Sherman Act
Securities and Exchange Commission
42. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t
Securities Exchange Act of 1934
Section 7A of the Clayton Act
Environmental Protection Agency (EPA)
Short swing profits
43. Negative causation - due diligence defense - ...
Informed consent
Injury-in-fact
Restitution
Defenses against liability of misrepresentations or omissions
44. 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.
Misrepresentation
Unilateral rescission
The Statute of Frauds
Reporting company
45. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer
Who is liable
Revocation
Federal Information Act
Excuse of condition
46. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.
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47. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.
Quasi-suspect classification
Fair Credit Reporting Act
Precedent
Rule 144 of the Securities Act
48. An exemption for certain small offerings
Rule of reason
Rules of interpretation of a contract by a court
Changed circumstances that allow a party to be excused from performance under the contract
Regulation A of the Securities Act
49. 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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50. Claims that the defendant has against the plaintiff
Counterclaims
Bona fide occupational qualification
Limited jurisdiction
Rules of construction