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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. 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






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






3. The person who assigns her rights






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






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






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






7. Protection of communications between an attorney and her client. Neither party is compelled to disclose such communications to the court. Only the client can waive the privilege.






8. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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9. The property that is the subject of a security interest






10. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






11. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






12. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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13. They are the 'Federal Rules' that govern the procedures for filing a civil suit in federal cort. The states have adopted their own rules of procedures - but they generally are parallel to the federal rules.






14. When the debtor voluntarily initiates the bankruptcy proceedings






15. The US appeals or appelate court. If a party appeals the district court's decision - it can be brought to the federal court of appeals or the federal court of appeals. It has appellate jurisdiction.






16. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






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






18. When a product is incorrectly manufactured that is unreasonably dangerous to consumers. To prove that 'unreasonably dangerous' - the show that an ordinary consumer would see it that way (consumer expectation test).






19. It regulates chemical substances






20. It is an action to avoid unjust enrichment.






21. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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22. A body of rules and system based on the decisions that judges have made in the past about such cases. It originated in England. In the late 1700s - Sir William Blackstone published 'Commentaries on the Law of England' - which provides the most compre






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






24. The promisor's failure to perform in accordance with the terms of the contract






25. 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.'






26. It focuses on the clean up of abandoned or historical hazardous waste sites - for which it established a 'Superfund'. The EPA (Environmental Protection Agency) identifies particularly egregious sites and places them on a National Priorities List. The






27. The party that won in the previous court trial - but the other party is appealing the decision.






28. 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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29. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






30. Speech regarding commercial or economic activities. Congress has a broad ability to regulate commercial speech. (However - government regulations based on content are subject to strict scrutiny - meaning that they will be sustained only if they are n






31. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






32. 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 -






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






34. 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






35. Ethical behavior in terms of its consequences ('the end justifies the means')






36. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






37. 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.






38. A current report required by the Exchange Act






39. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.






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






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. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






43. 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'.






44. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover






45. Regulates the handling of the pesticides being exported from and imported into the U.S.






46. The principle used by courts when both parties are equally guilty of illegality - or when the party seeking restitution is more at fault than the other party

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47. An exemption for certain small offerings






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






49. 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.'






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