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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 is the period in which a person may bring her claim. A contract becomes unenforceable after the statute of limitations has expired. A new contract must be created






2. A situation where one person unfairly benefits from a transaction






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






4. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize






5. 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.






6. Institutional investors - people with over a million dollars in net worth - venture capital firms - trusts with assets over $5 million - directors and executive officers of the issuing company - and other specified investors.






7. 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.






8. Directors - certain officers - and owners






9. 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






10. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






11. 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






12. This is when the appellate court send the case back to the lower court for a new trial.






13. Regulates trusts and monopolies






14. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.






15. A party's damage award will be reduced by any loss he did or could have avoided.






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






17. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.






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






19. A current report required by the Exchange Act






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






21. A group of between 16 and 23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime. A grand jury is required in the 5th Amendment for all criminal cases. The grand jury has the power to subpoena witnesses and doc






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






23. An exemption for certain small offerings






24. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.






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






26. Administers federal labor laws






27. Actual performance of an obligation






28. 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'






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






30. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






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


32. Enacted in 1969 to protect the environment from the actions of public or private actors. It declared a policy and promoted efforts to prevent or eliminate environmental damage. It also ensures that public and private actors better understand the ecol






33. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)






34. Inadequate warning of danger - which can be construed as a design defect






35. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im






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






37. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






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






39. 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






40. The difference between the value of the property as substantially complete and the value of the property upon full performance






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






42. A company subject to the Exchange Act






43. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






44. The person to extends credit or a loan - and hence the person to whom a debt is owed






45. 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






46. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






47. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






48. Both a rejection and termination of the original offer.






49. 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






50. In some contracts - the parties will stipulate the amount of damages to be awarded upon a breach. The courts will award such amount if the damages were difficult to determine at the time the contract was written - the stipulated amount is a reason fo