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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. 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.






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






3. A writ of certiorari is granted by the Supreme Court to a party appeal that they have decided to hear. It requires that four of the nine justice agree to hear the case. The majority of cases appealing to the Supreme Court are denied a writ of certior






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






5. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.






6. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.






7. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






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






9. A misrepresentation made with knowledge of its inaccuracy






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






11. 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.






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






13. 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






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






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






16. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.






17. Directors - certain officers - and owners






18. 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






19. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






20. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






21. The obligor does not need to provide consent - but does need to be given notice.






22. He has the enforceable right against the obligor because he is considered the real party interest.

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23. 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






24. A motion claiming that the plaintiff has not established enough evidence to prove her case. The motion can be made by the defendant when the plaintiff has finished completed presenting the case.






25. The creditor's security interest in real property






26. 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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27. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.






28. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






29. 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.






30. 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.






31. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






32. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






33. 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)






34. One of the primary federal federal statutes






35. The obligation to establish his claims first






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






37. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend






38. If the promisor substantially performs under teh contract






39. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)






40. Discrimination based on race or sex






41. Actual performance of an obligation






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






43. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)






44. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)






45. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.






46. Laws created by city councils or county boards - aimed at local matters






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






48. A condition that occurs at the same time as performance






49. 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






50. A current report required by the Exchange Act