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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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. 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.
Quasi-contract
Judicial review
Securities Act Registration
Common Law
2. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.
Bona fide occupational qualification
Motion of directed verdict or of dismissal
Export Administration Act (EAA)
Preponderance of evidence
3. 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.
Diversity jurisdiction
Liquidated damages clause
Treaties authority
Termination of an invitation to make an offer
4. Contracts that are formed for the intended benefit of some third party.
The Social Security Administration
Involuntary proceeding
Objective standard
Third party beneficiary
5. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)
Legal capacity
Bargained-for-exchange
Burden of proof
Demurrer
6. Ensures fair disclosure of credit terms - thereby protecting consumers from inaccurate and unfair billing and credit card practices
Employment discrimination
'Past consideration'
Penalty
Truth in Lending Act
7. The right of both parties to gain information concerning the other party and her witnesses.
Satisfaction
Bureau of Customs and Border Protection
Discovery
Who is liable
8. A pre-trial motion when the pleadings are vague or ambiguous.
Motion for a more definitive statement
Securities Exchange Act of 1934
Duress
Original jurisdiction
9. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept
'Blue sky' laws
General Agreement on Tariffs and Trades
Promisee's rights
Shareholder primacy
10. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.
Creditor
Section 11 of the Securities Act
Promisor's rights (in relation to the beneficiary)
Common Law
11. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.
Changed circumstances that allow a party to be excused from performance under the contract
Personal jurisdiction
Bargained-for-exchange
Rule 506 of Regulation D of the Securities Act
12. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.
Design defect
Assignee's rights
Equal protection
'due process'
13. Laws created by city councils or county boards - aimed at local matters
Suspect classification
Ordinances
10-Q
Pretexting
14. An independent federal agency established to promote consumer protection and reduce unfair competition among business.
Objective standard
Remediation
Standing
Federal Trade Commission (FTC)
15. 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
Commencing a lawsuit
Unconscionability
Exempt securities and transactions
Section 5 of the Securities Act
16. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.
Common Law
Bureau of Customs and Border Protection
Motion
Unsecured creditor
17. An anti-discrimination law that prohibits employment discrimination based on race - color - religion - sex - and national origin. This prohibits discrimination in hiring - firing - recruiting - and compensation. Prohibit sexual harassment or requesti
Clayton Act
Title VII of the Civil Rights Act of 1964
Beneficiary's rights
Per se
18. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section
Uniform Laws
Statutory Seller
Revocability
Defined benefit plans
19. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.
Security agreement
Executed exchange
Commencing a lawsuit
Donee beneficiary
20. Prohibit discrimination based on pregnancy or childbirth
The Social Security Administration
Oral argument
Implied terms
Pregnancy Discrimination ACt
21. It represents a request for the court to take some action. A motion can be filed by a defendant.
Motion
Section 12 (a)(1) of the Securities Act
8-K
Bargained-for-exchange
22. 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.
Chapter 11 of the Code
When an assignment becomes void
Legal ethics
Motion of directed verdict or of dismissal
23. Misrepresentation that was made with intent
Chapter 7 of the Code
United States Bankruptcy Code ('Code')
Fraud
'meeting of the minds'
24. The party seeking to appeal the previous court's decision
Securities
Misstatement or omission
Title VII of the Civil Rights Act of 1964
Appellant
25. A contract that is made where two promises are outstanding.
Toxic Substances Control Act
Bilateral contract
Exclusive dealing agreement
Organization for Economic Co-operation and Development (OECD)
26. All total breaches are material breaches. However - a total breach have factors including whether there is a likelihood of a cure - further delay will prevent the promisee from making alternative arrangements - or prompt performance is a critical ele
Contract
Section 5 of the Securities Act
Total breach
Bilateral Investment Treaty program
27. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo
Bilateral Investment Treaty program
Workers compensation laws
Foreign Sovereign Immunities Act
Performance
28. 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
'meeting of the minds'
Expertised portion
Fraud
Motion of directed verdict or of dismissal
29. Manages the nation's social security system
The Social Security Administration
Regulation A of the Securities Act
Lien
Market division
30. Treaties between two nations addressing investment concerns
Bilateral investment treaties
Quasi-suspect classification
Effect of delegation
Market division
31. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou
Equity of redemption
Consideration
The Family and Medical Leave Act
Objective standard
32. 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)
Expertised portion
Direct damages
Tie-in agreement
Regulation S of the Securities Act
33. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in
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34. An exemption for transactions involving offerings to employees.
Section 701 of the Securities Act
'Definite and certain'
Supreme Court powers
Negative causation
35. 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
Other constituency statutes
Criminal Trial
Concurrent conflict of interests
Regulation A of the Securities Act
36. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable
Mistake
Bureau of Customs and Border Protection
Commercial speech
Writ of certiorari
37. 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
Legal ethics
Substantive unconscionability
Assignee's rights
Implied contract
38. 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.
Accredited investor
Scienter
Informed consent
Enabling acts
39. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason
Scienter
Multilateral treaties
Other constituency statutes
Contract with intoxicated persons
40. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.
Product liability
Contract law
Intended beneficiary
Civil Law
41. 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.
Control persons
Writ of habeas corpus
Fraud
Judgment n.o.v.
42. A condition that occurs at the same time as performance
Employment law
Penalty
Expectation damages (also known as the 'benefit of the bargain')
Condition concurrent
43. It is an action to avoid unjust enrichment.
Restitution
Pleadings
Non-recoverable damages
'due process'
44. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner
'Mailbox' rule
Objective standard
Other constituency statutes
Federal Insurance Contributions Act
45. The person who assigns her rights
Obligee
Automatic stay
Clayton Act
'Mailbox' rule
46. It is a promise stated in words - either oral or written.
Equal Pay Act (EPA)
'de nuvo'
Grand jury
Express contract
47. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction
Plaintiff
Limited jurisdiction
Materiality
Fraud
48. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts
General jurisdiction
Exchange Act Regulations
Undue influence
National Labor Relations Act
49. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for
Exchange Act Regulations
Goods
Clean Air Act
Group boycotts
50. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.
Section 4 of the Securities Act
Judgment n.o.v.
Rule 144 of the Securities Act
Manufacturing defect