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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. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).






2. A supervening stature makes a contract illegal - and thereby makes performance impossible






3. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






4. 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






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






6. 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.






7. 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).






8. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.






9. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).






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






11. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years






12. 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'






13. The creditor's security interest in real property






14. A person who is not an intended beneficiary






15. Grants employees the right to bargain as a group and to establish - join - or assist labor organizations or unions. It requires the employers to bargain directly with the employees' representative. It establishes guidelines for the kinds of activitie






16. 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 -






17. 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.






18. The principle used by courts when both parties are equally guilty of illegality - or when the party seeking restitution is more at fault than the other party

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19. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






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






21. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






22. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






23. The documents that parties file in connection with their lawsuit






24. 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.






25. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






26. 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.






27. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)






28. 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

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






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






31. 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.






32. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






33. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






34. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches

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35. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






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






37. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






38. It represents the defendant's request for a new proceeding to determine if he is being unlawfully deprived of his liberty. It is limited to people in custody. It can only be used after all other methods have been exhausted.






39. Actual performance of an obligation






40. Torts and contracts... represents law that regulates the relationships between parties.






41. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.

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42. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).






43. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.

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44. Twelve members of jury that hear the evidence at the trial court. The Judge rules on the evidence and guides the jury on questions of law and proper rules of procedure.






45. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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46. 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

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47. 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.






48. The first court to consider an action






49. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






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

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