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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. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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2. Place of permanent residence






3. When the jury retires to a separate room to decide the outcome of the case.






4. It regulates chemical substances






5. The primary doctrine used to substitute for consideration is promissory estoppel or detrimental reliance. Under that doctrine - a promise will be enforced without consideration under the following conditions: (a) The promisor should reasonably expect






6. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)






7. A condition that cuts off a pre-existing duty






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






9. 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.






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






11. Prohibits institutions from discrimination related to credit applications






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






13. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other






14. 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






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






16. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






17. 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






18. 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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19. 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'.






20. Regulates air and water pollution as well as address problems associated with certain toxic substances






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






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






23. Enables debtors to create a repayment plan for certain debts - while still retaining their assets.






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






25. A promise that is inferred from a person's conduct or the circumstances of the transaction






26. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.






27. When there is no bargained-for exchange - because there is no exchange.






28. 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.






29. The agreement to create a security interest






30. A trivial defect in performance (the opposite of material breach).






31. 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






32. Torts and contracts... represents law that regulates the relationships between parties.






33. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






34. 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






35. Discrimination based on race or sex






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






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. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






39. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






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






41. 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)






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






43. 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






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






45. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).






46. 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






47. The written set of charges against the defendant - which is presented to a grand jury.






48. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






49. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.






50. 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