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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. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.

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2. Legally recognized injury






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. Treaties between two nations addressing investment concerns






5. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






6. 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






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






8. 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






9. The agreement to create a security interest






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






12. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






13. A trivial defect in performance (the opposite of material breach).






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

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15. 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).






16. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.






17. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.






18. It is the opportunity for each party to present their arguments to the appellate court. However - it is not always allowed.






19. A condition that must occur before a duty to perform arises






20. 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






21. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize






22. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






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






24. The creditor's security interest in real property






25. 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)






26. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration






27. 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






28. 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






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






30. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






31. 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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32. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)






33. Actual performance of an obligation






34. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






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






37. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






38. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions






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






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






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






42. When there is no bargained-for exchange - because there is no exchange.






43. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






44. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan






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






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

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






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






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






50. 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