Test your basic knowledge |

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 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.






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






3. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.






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






5. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






6. Ensures fair disclosure of credit terms - thereby protecting consumers from inaccurate and unfair billing and credit card practices






7. The right of both parties to gain information concerning the other party and her witnesses.






8. A pre-trial motion when the pleadings are vague or ambiguous.






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






10. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






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






12. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






13. Laws created by city councils or county boards - aimed at local matters






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






15. Any party bringing suit must have standing (the legal right to bring the suit). The plaintiff files a complaint with the trial court setting for the basis of his lawsuit. The court must then issue to the defendant a copy of the complaint and a summon






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






17. 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






18. 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






19. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.






20. Prohibit discrimination based on pregnancy or childbirth






21. It represents a request for the court to take some action. A motion can be filed by a defendant.






22. A motion claiming that the plaintiff has not established enough evidence to prove her case. The motion can be made by the defendant when the plaintiff has finished completed presenting the case.






23. Misrepresentation that was made with intent






24. The party seeking to appeal the previous court's decision






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






26. All total breaches are material breaches. However - a total breach have factors including whether there is a likelihood of a cure - further delay will prevent the promisee from making alternative arrangements - or prompt performance is a critical ele






27. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo






28. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion






29. Manages the nation's social security system






30. Treaties between two nations addressing investment concerns






31. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou






32. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)






33. 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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


34. An exemption for transactions involving offerings to employees.






35. 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






36. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable






37. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






38. 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.






39. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






40. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






41. 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.






42. A condition that occurs at the same time as performance






43. It is an action to avoid unjust enrichment.






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






45. The person who assigns her rights






46. It is a promise stated in words - either oral or written.






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






48. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts






49. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for






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