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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. 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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2. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.






3. 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.






4. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.

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5. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






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






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

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8. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.






9. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






10. 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






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






12. 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






13. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws






14. 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.






15. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s

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16. 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






17. 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)






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






19. 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.






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. A situation where one person unfairly benefits from a transaction






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






23. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t






24. When both parties agree to rescind the contract






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






26. Offering made to purchase all or a portion of the shares of a specific company






27. 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






28. Not discriminating against foreign product - thereby treating all products within their border equally






29. The first court to consider an action






30. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






31. 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.






32. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






33. 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






34. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.






35. A quarterly report required by the Exchange Act






36. 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).






37. Administers federal labor laws






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






39. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






40. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






41. 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.






42. 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.






43. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).






44. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'






45. The Constitution makes treaties the 'supreme law of the land'






46. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






47. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






48. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






49. Place of permanent residence






50. 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.