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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 promisor can raise any defense against the beneficiary that he would have been able to raise against the promisee. The promisor cannot raise a defense against the beneficiary and the promisee.

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






3. The primary doctrine used to substitute for consideration is promissory estoppel or detrimental reliance. Under that doctrine - a promise will be enforced without consideration under the following conditions: (a) The promisor should reasonably expect






4. Establishes certain rules for the proper resale - including the requirement that such securities must be held for at least one year - and sold through a broker in a transaction that involves a limited percentage of securities.






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






6. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.






7. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior






8. Laws that states have passed that aim at regulating securities transactions within their states.

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






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






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






12. When a control makes a profit purchasing and selling her shares within a six-month period






13. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.

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14. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor






15. 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'.






16. When the jury retires to a separate room to decide the outcome of the case.






17. Misrepresentation that was made with intent






18. Prohibits institutions from discrimination related to credit applications






19. 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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20. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






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






22. 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.






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






24. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.






25. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






26. This sets standards for federal agency rule making as well as standards for hearings conducted by such agencies. A court appeal is not allowed until all administrative remedies have been exhausted. Courts do not overturn agency actions unless they ar






27. A condition that cuts off a pre-existing duty






28. An exemption for securities sold outside of the U.S.






29. The difference between the value of the property as substantially complete and the value of the property upon full performance






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






31. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).






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






33. 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






34. 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






35. When the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.






36. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






37. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






38. Constitutes conduct that improper or unethical. A tort action of negligence against lawyers for failing to satisfy their professional duty of care owed to their clients.






39. Created through the Occupational Safety and Health Ac. It is federal administrative agency that works with employers and employees to ensure compliance with workplace safety standards. It requires employers to maintain information on employee acciden






40. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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41. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






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






43. When both parties are mistaken - the mistake concerns a basic assumption on which the contract was made that has material impact on performance - and the party seeking to avoid performance has not assumed the risk of the mistake. Contract is voidable






44. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






45. 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).






46. One of the primary federal federal statutes






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






48. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'






49. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






50. 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






Can you answer 50 questions in 15 minutes?



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