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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. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept
Employment law
Federal Information Act
Changed circumstances that allow a party to be excused from performance under the contract
Shareholder primacy
2. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.
Misappropriation theory
Exchange Act Regulations
Uniform Commercial Code ('UCC')
Creditor
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
Criminal Trial
Remediation
Restatement (Second) of Contracts
Fair Labor Standards Act (FLSA)
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
Excuse of condition
Attorney/client privilege
Mutual assent
Process of appealing a case through the three levels of court
5. (an exception to Title VII) Discrimination is permitted because of the occupation qualifications
Bona fide occupational qualification
Bilateral Investment Treaty program
Workers compensation laws
Rational basis test
6. Discrimination based on race or sex
Writ of habeas corpus
Employment discrimination
Regulation D of the Securities Act
Social entity or stakeholder theory of the corporation
7. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner
Bilateral treaties
Illusory promise
Other constituency statutes
Accord
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
Securities
Workers compensation laws
Equity of redemption
Rules of construction
9. If the promisor substantially performs under teh contract
Partial or trivial breach
Supervening illegality
Section 12 (a)(1) of the Securities Act
Unjust enrichment
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
Foreign Sovereign Immunities Act
Condition concurrent
'Mirror image' rule
'clear and present'
13. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions
Assignment of rights
Proxy
Prospectus
Nonexpertized portions
14. An intent to deceive or defraud
Regulation A of the Securities Act
Levels of courts
Negative causation
Scienter
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.
Motion to strike
Demurrer
Judicial review
Grand jury
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.
Equal Credit Opportunity Act
Trademark
'Mailbox' rule
Res judicata
17. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.
Employment law
Consideration
Federal district court
The Statute of Frauds
18. An independent federal agency established to promote consumer protection and reduce unfair competition among business.
Federal Trade Commission
Federal Trade Commission (FTC)
Obligee
Express contract
19. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable
Injury-in-fact
Charitable contributions
Automatic stay
Objective standard
20. Obtaining consumer's private financial information under false pretenses
Pretexting
Unjust enrichment
10-K
Utilitarianism
21. The difference between the value of the performance a party should have received and the value of the performance the party actually received.
Consumer protection
Direct damages
Production quotas
Pleadings
22. When the plaintiff's damages were caused by something other than the misrepresentation or omission
Negative causation
Appellant
Excuse of condition
Informed consent
23. Both a rejection and termination of the original offer.
Implied terms
Strict liability
Counteroffer
When an assignment becomes void
24. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `
Exclusive distributor agreements
Trademark
'Definite and certain'
Trust
25. A contract that is made where two promises are outstanding.
Bilateral contract
Secured transaction
Judgment n.o.v.
Regulation A of the Securities Act
26. Inadequate warning of danger - which can be construed as a design defect
Inadequate warning defect`
General Agreement on Tariffs and Trades
Motion to strike
Uniform Laws
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)
Writ of habeas corpus
When an assignment becomes void
Exclusive distributor agreements
Control persons
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)
Deontological
Unsecured creditor
Occupational Safety and Health Act
Option contract
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
Statutory Seller
Social entity or stakeholder theory of the corporation
Attachment
Economic waste
30. Prevents discrimination against employees who are 40years old or more
National Labor Relations Act
The Social Security Administration
Enabling acts
Age Discrimination in Employment Act (ADEA)
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.
Exempt securities and transactions
Section 7A of the Clayton Act
Section 4 of the Securities Act
Administrative law judges
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
Regulation A of the Securities Act
Motion for a more definitive statement
Statutory Seller
Substitutes of consideration
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
Levels of courts
National Environmental Policy Act (NEPA)
Third party beneficiary
Gift
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
Oral argument
Rule 12b (6) motion
Substitutes of consideration
Complete or total integration
36. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.
Intended beneficiary
Expropriation
Third party beneficiary
Federal Trade Commission
37. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship
Contracts that prohibit assignment
General jurisdiction
Performance
Rule of reason
38. A party's damage award will be reduced by any loss he did or could have avoided.
Duty to mitigate
Answer
10-Q
Jurisdiction
39. Contracts that are formed for the intended benefit of some third party.
Procedural unconscionability
Substantial performance
Third party beneficiary
Post-trial motions
40. The exchange of promises or an exchange of a promise for a performance.
Pension Benefit Guaranty Corporation (PBGC)
Section 11 of the Securities Act
Bureau of Consumer Protection
Bargained-for-exchange
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
Involuntary proceeding
Monopoly
Res ipsa loquitor
Strict liability
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.
Bureau of Consumer Protection
Defined contribution plan
Employee Retirement Income Security Act (ERISA)
The Family and Medical Leave Act
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.
Answer
Equal Employment Opportunity Commission (EEOC)
Informed consent
Priority of secured transactions
44. Actions designed to permanently reduce the health and safety risk associated with the site.
National Ambient Air Quality Standards
Remediation
Offer
Scienter
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
Informed consent
General Agreement on Tariffs and Trades
Employee Retirement Income Security Act (ERISA)
Illusory promise
46. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices
Fair Debt Collection Act
Prospectus
Federal Environmental Pesticide Control Act
The Family and Medical Leave Act
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.
Unsecured creditor
Employment discrimination
Parol Evidence Rule
Uniform Commercial Code ('UCC')
49. Not discriminating against foreign product - thereby treating all products within their border equally
Suspect classification
National Treatment
Priority of secured transactions
Assignor
50. When a party unlawfully indicate that he will not perform when the performance is due.
Anticipatory repudiation
Petit jury
Assignment of rights
Original jurisdiction