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






2. 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.






3. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






4. Grants employees the right to bargain as a group and to establish - join - or assist labor organizations or unions. It requires the employers to bargain directly with the employees' representative. It establishes guidelines for the kinds of activitie






5. A promise that is inferred from a person's conduct or the circumstances of the transaction






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






7. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting






8. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






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






10. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






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






12. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu






13. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired






14. 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)






15. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






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






17. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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18. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






19. Prohibit discrimination based on pregnancy or childbirth






20. 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.






21. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'






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






23. Enables debtors to create a repayment plan for certain debts - while still retaining their assets.






24. 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.






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






26. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






27. The promisor can raise any defense against the beneficiary that he would have been able to raise against the promisee. The promisor cannot raise a defense against the beneficiary and the promisee.

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






29. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






30. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






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






32. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






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






34. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible






35. 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






36. 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)






37. 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






38. 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






39. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.






40. An exemption for certain small offerings






41. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






42. 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






43. 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






44. Agreements between buyers and sellers - price-related agreements are per se illegal. Such agreements require court scrutiny based on the rule of reason in order to be held illegal.






45. A distinct mark or symbol that identifies a business and its products






46. 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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47. 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






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






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






50. Establishes that federal and state courts do not have jurisdiction over cases against a foreign nation. Immunity ends if the commercial activity occurred in the US - actions in the US based on commercial activities abroad - or commercial activities a