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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 party seeking to appeal the previous court's decision






2. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.






3. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






4. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






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






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






7. Negative causation - due diligence defense - ...






8. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)






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






10. Actions designed to permanently reduce the health and safety risk associated with the site.






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






13. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s

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14. An exemption for securities sold outside of the U.S.






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

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16. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p






17. An interest in property or collateral granted in order to ensure payment of a debt or obligation






18. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.






19. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d






20. If the promisor substantially performs under teh contract






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






22. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






23. The obligation to establish his claims first






24. Treaties among several parties that seek to allocate rights and responsibilities among the parties






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






26. 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.






27. 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.






28. The exchange of promises or an exchange of a promise for a performance.






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

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30. A quarterly report required by the Exchange Act






31. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts






32. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






33. 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






34. 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






35. 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.






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






37. 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.






38. 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






39. 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






40. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






41. It represents a request for the court to take some action. A motion can be filed by a defendant.






42. 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.






43. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






44. 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.






45. One party made a mistake - the mistake concerns a basic assumption on which the contract was made that has a material impact on performance - the party seeking to avoid performance has not assumed the risk of the mistake - and equities favor avoidanc






46. Consent after the lawyer has adequately informed the client about the conflict and not only has explained to her the material risk associated with the conflict but also has made available her reasonable alternatives to the proposed conflict






47. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)






48. It regulates chemical substances






49. Discrimination based on race or sex






50. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other