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CLEP Introductory Business Law

Subjects : clep, law, business-law
  • Answer 50 questions in 15 minutes.
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  • 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. 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.

2. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)

3. An intent to deceive or defraud

4. 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

5. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship

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

7. The proceeding for a supervised reorganization of the debtor's business. The debtor must present a plan of reorganization to the bankruptcy court. After 120 days - creditors have the right to present competing plans. The court makes the final determi

8. He can raise any defense against the assignee that she would have been able to raise against the assignor. This is the right to offset the assignee's claim - and thus the assignee cannot be held directly liable to the assignor for the improper action

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

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

11. The creditor's security interest in real property

12. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other

13. 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

14. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.

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

16. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws

17. The standards designed to reduce the presence of pollutants int eh air to levels that are consistent with promoting good health and preserving the environment. States must ensure that they are in compliance with such standards

18. Prohibits institutions from discrimination related to credit applications

19. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im

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

21. 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.

22. 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

23. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court

24. The person to extends credit or a loan - and hence the person to whom a debt is owed

25. 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

26. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.

27. This involves filing a registration statement with the SEC - which contains information about the securities to be registered as well as the company that is issuing the security. Included within the registration statement is a prospectus

28. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.

29. 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.

30. 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).

31. Administers federal labor laws

32. 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

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

34. Actions designed to permanently reduce the health and safety risk associated with the site.

35. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.

36. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance

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

38. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions

39. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.

40. 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

41. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'

42. The obligor does not need to provide consent - but does need to be given notice.

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

44. Rules of ethics that govern the practice of law and the conduct of lawyers

45. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.

46. Prevents discrimination against employees who are 40years old or more

47. Prohibit discrimination based on pregnancy or childbirth

48. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time

49. 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

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