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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. Punitive damage - non-economic damages - and attorneys' fees






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






3. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






4. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






5. 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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6. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






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






8. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen






9. The person to whom the right is assigned






10. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






11. Agreements between competitors to set particular prices for their products (a horizontal agreement)






12. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






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






14. A perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio






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






16. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






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






18. 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.






19. Discrimination based on race or sex






20. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.






21. Automatic violations of the Sherman Act






22. 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






23. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






24. 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.






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






26. 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






27. 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.






28. When both parties agree to rescind the contract






29. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.






30. 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






31. 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






32. The right to hold a security interest on a debtor's property.






33. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






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






35. It is a promise stated in words - either oral or written.






36. 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.






37. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion






38. An agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money. In the event of a default - the security interest allows the creditor to take possession of the property/asset in order to






39. Claims that the defendant has against the plaintiff






40. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






41. 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






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






43. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






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






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






46. Oversees the purchase and sale of securities






47. 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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48. 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






49. 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.'






50. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable