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






2. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.






3. 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






4. After taking the case to the federal district court - the party has the right to appeal to the federal circuit court of appeals. there are twelve federal appeals courts that hear cases from several different district courts within a specific geograph






5. (an exception to Title VII) Discrimination is permitted because of the occupation qualifications






6. Discrimination based on race or sex






7. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






8. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions






9. If the promisor substantially performs under teh contract






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


11. 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


12. 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






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






14. An intent to deceive or defraud






15. 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.






16. 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.






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






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






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






20. Obtaining consumer's private financial information under false pretenses






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






22. When the plaintiff's damages were caused by something other than the misrepresentation or omission






23. Both a rejection and termination of the original offer.






24. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






25. A contract that is made where two promises are outstanding.






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






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






28. 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)






29. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for






30. Prevents discrimination against employees who are 40years old or more






31. 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


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






33. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section






34. Enacted in 1969 to protect the environment from the actions of public or private actors. It declared a policy and promoted efforts to prevent or eliminate environmental damage. It also ensures that public and private actors better understand the ecol






35. 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






36. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






37. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






38. A party's damage award will be reduced by any loss he did or could have avoided.






39. Contracts that are formed for the intended benefit of some third party.






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






41. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






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






43. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






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






45. 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






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






47. 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


48. A creditor that does not have a security interest in any of the debtor's property or assets.






49. Not discriminating against foreign product - thereby treating all products within their border equally






50. When a party unlawfully indicate that he will not perform when the performance is due.