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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. Prohibit discrimination based on pregnancy or childbirth






2. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






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






4. 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






5. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

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6. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






7. Prohibits institutions from discrimination related to credit applications






8. 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






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






10. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






11. 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.






12. Ethical behavior is guided by duties or obligation. John Locke referred to these obligations as 'natural rights' that are natural - universal - and inalienable (as seen in the Declaration of Independence)






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






14. The person to whom the right is assigned






15. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






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






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






18. 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






19. One party made a mistake - the mistake concerns a basic assumption on which the contract was made that has a material impact on performance - the party seeking to avoid performance has not assumed the risk of the mistake - and equities favor avoidanc






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






21. It focuses on the clean up of abandoned or historical hazardous waste sites - for which it established a 'Superfund'. The EPA (Environmental Protection Agency) identifies particularly egregious sites and places them on a National Priorities List. The






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






23. A quarterly report required by the Exchange Act






24. 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.






25. An assertion that is not in accord with the facts. A contract becomes voidable when it is shown that a misrepresentation was made - it was material - and the party seeking avoidance reasonably relied on it.






26. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.






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






28. Oversees implementation of this benefit program of the Social Security Act






29. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






30. 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.






31. After taking the case to the federal district court - the party has the right to appeal to the federal circuit court of appeals. there are twelve federal appeals courts that hear cases from several different district courts within a specific geograph






32. 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






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






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

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35. 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

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36. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed






37. An interest in property or collateral granted in order to ensure payment of a debt or obligation






38. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage






39. When a court believes that a contract is so one-sides and unfair that it would be unconscionable to enforce it. (Two different types are substantive and procedural) A contract becomes voidable






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






42. They represent the amount of money a party has spent in justifiable reliance on a contract.






43. Oversees the purchase and sale of securities






44. 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






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






46. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

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47. The creditor's right to take possession of the property is called foreclosure






48. The property that is the subject of a security interest






49. Directors - certain officers - and owners






50. 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'