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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. An order prohibiting a party from engaging in certain conduct. A count will only issue an injunction if the damage remedy is inadequate and the injunction is necessary to prevent irreparable harm to the non-breaching party.






2. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






3. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

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4. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






5. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






6. A court reference to the notion that there must be mutual agreement about the exchange to be performed

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






8. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






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






10. The right to hold a security interest on a debtor's property.






11. 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)






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






13. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th






14. Regulates trusts and monopolies






15. A person who is not an intended beneficiary






16. A quarterly report required by the Exchange Act






17. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con






18. 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






19. 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






20. Regulates the handling of the pesticides being exported from and imported into the U.S.






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






22. It is the opportunity for each party to present their arguments to the appellate court. However - it is not always allowed.






23. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover






24. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






25. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.






26. Any party bringing suit must have standing (the legal right to bring the suit). The plaintiff files a complaint with the trial court setting for the basis of his lawsuit. The court must then issue to the defendant a copy of the complaint and a summon






27. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






28. 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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29. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






30. 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






31. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






32. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






33. The creditor's security interest in real property






34. Prevents discrimination against employees who are 40years old or more






35. Contracts that are formed for the intended benefit of some third party.






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






37. Actual performance of an obligation






38. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






39. The person to whom the right is assigned






40. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






41. 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






42. 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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43. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.






44. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)






45. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.

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46. 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






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






48. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for






49. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






50. Treaties entered into between two nations