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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable
Consequential damages
Mistake
Consumer protection
Termination of an invitation to make an offer
2. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o
Pre-existing duty
Uniform Commercial Code ('UCC')
Retraction
Discharge of contract
3. 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.
Misrepresentation
Attorney/client privilege
Contracts that prohibit assignment
Petit jury
4. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.
Specialized federal courts
Tie-in agreement
Implied contract
Promisee's rights
5. 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.
Statutory Seller
Bilateral contract
Private placement
Materiality
6. The promisor's failure to perform in accordance with the terms of the contract
Americans with Disabilities Act (ADA)
Breach
Companies that are subject to the exchange act (Reporting companies)
Collateral
7. 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.
Federal Trade Commission (FTC)
Collateral
Equal Employment Opportunity Commission (EEOC)
Implied contract
8. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.
'Mirror image' rule
Federal Communications Commission
Indictment
Section 11 of the Securities Act
9. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.
Defined contribution plan
National Treatment
Mutual rescission
Equal Employment Opportunity Commission (EEOC)
10. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p
National Ambient Air Quality Standards
Regulation D of the Securities Act
Rule 12b (6) motion
Promisor's rights (in relation to the beneficiary)
11. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare
Ordinances
Suspect classification
Common Law
Motion to strike
12. Securities issued by the federal government - state governments - or any of their subdivision; securities issued by a charitable organization; issued by banks or saving or loan institutions - issued by a receiver or trustee in bankruptcy;. issued wit
Exempt securities and transactions
Non-recoverable damages
The Social Security Administration
Appellant
13. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of
Contracts that prohibit assignment
Enabling acts
'Takings'
Nonexpertized portions
14. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.
Unilateral contract
'Mailbox' rule
Motion to strike
Federal question jurisdiction
15. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)
Common Law
Priority of secured transactions
Exclusive dealing agreement
Criminal Trial
16. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason
'clear and present'
Duress
Answer
Contract with intoxicated persons
17. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo
Chapter 11 of the Code
Appellant
Workers compensation laws
Equal Employment Opportunity Commission (EEOC)
18. A party's damage award will be reduced by any loss he did or could have avoided.
Motion
Answer
Federal district court
Duty to mitigate
19. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.
Injunction
Direct damages
Civil Law
Jurisdiction
20. A condition that must occur before a duty to perform arises
Rational basis test
Section 10(b) and Rule 10b-5 of the Exchange Act
Defenses against liability of misrepresentations or omissions
Condition precedent
21. 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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22. 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
Satisfaction
Bilateral contract
Section 11 of the Securities Act
Retraction
23. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984
Verdict
Examples of Uniform Laws
National Treatment
Utilitarianism
24. A condition that occurs at the same time as performance
Third party beneficiary
Condition concurrent
Rule 505 of Regulation D of the Securities Act
Perfected
25. The Constitution makes treaties the 'supreme law of the land'
Treaties authority
Deontological
Novation
Misappropriation theory
26. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)
Answer
Satisfaction
Rule of reason
Vesting of beneficiary's rights
27. 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.
Appellate jurisdiction
Federal Insurance Contributions Act
Clayton Act
Executed exchange
28. 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.
Counterclaims
Statutory Seller
The Family and Medical Leave Act
Misrepresentation
29. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is
Parol Evidence Rule
Administrative Procedure Act
Express contract
Defendant
30. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action
Verdict
Subjective intent
Complete or total integration
Section 12 (a)(1) of the Securities Act
31. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c
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32. 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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33. The person to extends credit or a loan - and hence the person to whom a debt is owed
Statutory Seller
Federal Environmental Pesticide Control Act
Creditor
Discovery
34. 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
Foreign Corrupt Practices Act
Clean Air Act
Res ipsa loquitor
Subject matter jurisdiction
35. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.
Americans with Disabilities Act (ADA)
Short swing profits
Illusory promise
Judicial review
36. The party seeking to appeal the previous court's decision
Short swing profits
Securities Act
Appellant
Unjust enrichment
37. 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
Federal Insurance Contributions Act
Statutory Seller
Bureau of Customs and Border Protection
Unconscionability
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.
Writ of habeas corpus
Promisor's rights (in relation to the beneficiary)
Concurrent conflict of interests
Plaintiff
39. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section
Charitable contributions
10-Q
Mutual assent
Statutory Seller
40. 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)
Promise
Reliance
'de nuvo'
Occupational Safety and Health Act
41. 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.
Trial court
Consumer protection
Mental incapacity
Parol Evidence Rule
42. 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.
Penalty
National Labor Relations Board (NLRB)
Complete or total integration
Judgment n.o.v.
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. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions
Rules of construction
Demurrer
Negative causation
Parol Evidence Rule
45. 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 -
Domicile
Intended beneficiary
10-K
Illusory promise
46. The person to whom the right is assigned
Priority of secured transactions
Equal Pay Act (EPA)
Reporting company
Assignee
47. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.
Economic waste
Misstatement or omission
Retraction
Beneficiary's rights
48. 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 -
Toxic Substances Control Act
Civil Law or Code Law
'de nuvo'
Appellant
49. 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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50. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.
Contract
Precedent
Restitution
Economic waste