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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. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






2. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






3. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






4. 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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5. 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.






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






7. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.






8. Actual performance of an obligation






9. Administers federal labor laws






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






11. An intent to deceive or defraud






12. A distinct mark or symbol that identifies a business and its products






13. Revocability relates to situations when an assignment can be taken away from the assignee. When an assignment is supported by consideration - it irrevocable - and vice-versa. If an assignment is irrevocable - then the assignor does not have the right






14. An agreement of when the promisee agree to accept different performance from the original promisor in exchange for a release of the original agreement. However - the original obligation is not discharged until there has been satisfaction.






15. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






16. Defenses that would prevent the plaintiff from holding the defendant liable






17. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu






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






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






20. The belief that the corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders. However - laws do not impose this obligation/responsibility






21. 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






22. Duties that involve some personal service or skill or that would materially change the obligor's expectancy under the contract may not be delegated without the obligee's consent. When a contract prohibit assignment - then it also cannot be delegated.






23. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






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






25. A misrepresentation made with knowledge of its inaccuracy






26. The promisor's failure to perform in accordance with the terms of the contract






27. The obligee who officially assigned over his rights






28. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






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

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30. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.






31. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible






32. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






33. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






34. Speech regarding commercial or economic activities. Congress has a broad ability to regulate commercial speech. (However - government regulations based on content are subject to strict scrutiny - meaning that they will be sustained only if they are n






35. The agreement to create a security interest






36. 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.






37. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






38. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -






39. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






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






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






42. A company subject to the Exchange Act






43. 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






44. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend






45. A company becomes a 'public company' when it issues its securities pursuant to this registration process.






46. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






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






48. 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






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






50. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con