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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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. 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
Commercial speech
Who is liable
Defined contribution plan
Title VII of the Civil Rights Act of 1964
2. The obligation to establish his claims first
Burden of proof
Bureau of Consumer Protection
Objective standard
Post-trial motions
3. Provides specific (3) categories for exemption: Rule 504 - 505 - 506
Unilateral mistake
Unconscionability
Regulation D of the Securities Act
Product liability
4. 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
Restitution and rescission
Pre-existing duty
Commencing a lawsuit
'in pari delicto'
5. 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
Malpractice
Consideration
Assignee
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
6. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.
National Institute for Occupational Health
Judgment n.o.v.
Treaties authority
Who is liable
7. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd
Occupational Safety and Health Act
Federal Insurance Contributions Act
Subject matter jurisdiction
Parol Evidence Rule
8. 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.
Clean Water Act
Subjective intent
Creditor
Investment contracts
9. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls
Export Administration Regulations (EAR)
Counterclaims
Obligee
Grand jury
10. The person who assigns her rights
Mortgage
Obligee
Consequential damages
Market division
11. 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
Securities and Exchange Commission
Uniform Laws
Section 7A of the Clayton Act
Corporate social responsibility
12. Oversees implementation of this benefit program of the Social Security Act
Strict liability
Social Security Administration
Appellate jurisdiction
Clean Water Act
13. The promisor's failure to perform in accordance with the terms of the contract
Discharge of contract
Breach
When an assignment becomes void
Title VII of the Civil Rights Act of 1964
14. A party's damage award will be reduced by any loss he did or could have avoided.
Post-trial motions
Contract law
Duty to mitigate
'Ffour corners'
15. It is a promise stated in words - either oral or written.
Perfected
Investment contracts
Express contract
Incidental beneficiary
16. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of
Informed consent
Contracts that prohibit assignment
Gramm-Leach-Bliley Act
Strict liability
17. 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.'
Assignment of rights
Toxic Substances Control Act
Per se
Reliance
18. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.
Joint obligation
Indictment
Mental incapacity
Assignment of rights
19. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -
Executed exchange
United States Bankruptcy Code ('Code')
Rule 144 of the Securities Act
Civil Law or Code Law
20. The first court to consider an action
Injunction
Token consideration
Condition subsequent
Original jurisdiction
21. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th
Concurrent conflict of interests
Supervening illegality
Gramm-Leach-Bliley Act
Writ of certiorari
22. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.
Goods
Pension Benefit Guaranty Corporation (PBGC)
Demand assurance
Section 10(b) and Rule 10b-5 of the Exchange Act
23. 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).
Public company
Product liability
Utilitarianism
Duress
24. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.
Federal Information Act
Contract
Ordinances
Exchange Act Regulations
25. An order prohibiting a party from engaging in certain conduct. A count will only issue an injunction if the damage remedy is inadequate and the injunction is necessary to prevent irreparable harm to the non-breaching party.
Injunction
Stare decisis
Unemployment compensation laws
Rational basis test
26. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court
Levels of courts
Standing
Prosecution
Subject matter jurisdiction
27. Potential responsibility for payment of damages or other court - ordered enforcement as a result of a ruling in a lawsuit. Civil liability is not the same as criminal liability - which means 'open to punishment for a crime.'
Civil liability
Restatement (Second) of Contracts
Bureau of Customs and Border Protection
Undue influence
28. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.
Rule 506 of Regulation D of the Securities Act
Option contract
Age Discrimination in Employment Act (ADEA)
When an assignment becomes void
29. When the debtor voluntarily initiates the bankruptcy proceedings
Rule of reason
Voluntarily proceeding
Contract with intoxicated persons
Delegation
30. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe
Personal jurisdiction
Proxy
Restatement (Second) of Contracts
Commercial speech
31. The person to extends credit or a loan - and hence the person to whom a debt is owed
Expropriation
Illusory promise
Rational basis test
Creditor
32. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.
Rational basis test
Truth in Lending Act
Secured transaction
Anticipatory repudiation
33. A condition that cuts off a pre-existing duty
Civil Law
Condition subsequent
Mental incapacity
Bona fide occupational qualification
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
Design defect
'Takings'
Restitution and rescission
Toxic Substances Control Act
35. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market
Reliance
Appellate jurisdiction
Procedural unconscionability
Contracts that prohibit assignment
36. 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
Restatement (Second) of Contracts
The Statute of Frauds
Consequential damages
Pregnancy Discrimination ACt
37. The party seeking to appeal the previous court's decision
Specialized federal courts
Horizontal agreement
Equal Employment Opportunity Commission (EEOC)
Appellant
38. 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 -
Bilateral Investment Treaty program
Unjust enrichment
Manufacturing defect
Intended beneficiary
39. Both a rejection and termination of the original offer.
Liability based on intentional tort
Complete or total integration
Ordinances
Counteroffer
40. 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
Suspect classification
Prospectus
Res judicata
Section 7A of the Clayton Act
41. Actions designed to permanently reduce the health and safety risk associated with the site.
Enabling acts
Remediation
Performance
Writ of certiorari
42. A writ of certiorari is granted by the Supreme Court to a party appeal that they have decided to hear. It requires that four of the nine justice agree to hear the case. The majority of cases appealing to the Supreme Court are denied a writ of certior
Writ of certiorari
Novation
Expertised portion
Clean Water Act
43. An exemption for securities sold outside of the U.S.
Subjective intent
Regulation S of the Securities Act
Suspect classification
Defined contribution plan
44. Punitive damage - non-economic damages - and attorneys' fees
Non-recoverable damages
Corporate social responsibility
Control persons
Other constituency statutes
45. An anti-discrimination law that prohibits employment discrimination based on race - color - religion - sex - and national origin. This prohibits discrimination in hiring - firing - recruiting - and compensation. Prohibit sexual harassment or requesti
Anticipatory repudiation
Workers compensation laws
Commercial speech
Title VII of the Civil Rights Act of 1964
46. Treaties entered into between two nations
Bilateral treaties
Multilateral treaties
Vesting of beneficiary's rights
Strict liability
47. 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
Remand
Revocation
Rule 147 of the Securities Act
Public company
48. They represent the amount of money a party has spent in justifiable reliance on a contract.
Scienter
Appellate jurisdiction
Reliance damages
Rule 147 of the Securities Act
49. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.
'clear and present'
Inadequate warning defect`
Defined contribution plan
Demand assurance
50. Liability extends to ___________ - without the plaintiff needing to proof of reliance or causation. The seller can avoid liability by showing negative causation - the plaintiff knew that the statements in the prospectus at the time of her purchase -
Strict liability
Any statutory seller
Security agreement
National Labor Relations Board (NLRB)