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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. 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






2. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






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






4. When a party unlawfully indicate that he will not perform when the performance is due.






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. When the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.






7. 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






8. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.






9. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






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






11. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).






12. 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.






13. Defenses that would prevent the plaintiff from holding the defendant liable






14. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu






15. Agreements between buyers and sellers - price-related agreements are per se illegal. Such agreements require court scrutiny based on the rule of reason in order to be held illegal.






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






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






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






19. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






20. The exchange of promises or an exchange of a promise for a performance.






21. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






22. 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).






23. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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






25. Employers make payments to retired employees based on the length of their employment and the wages they received.






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






27. An intent to deceive or defraud






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






29. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.






30. When both parties agree to rescind the contract






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






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






33. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






34. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






35. Previous decisions made by decisions - by which the current judges must abide by.






36. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.

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






38. 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






39. Laws that provides employees with compensation for a set period of time when they become unemployed through no fault of their own. It is a combined federal and state insurance program in which they both contribute money - along with the employers. Ea






40. 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






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. Directors - certain officers - and owners






43. 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.






44. It is a pre-trial motion to take out certain matters






45. An exemption for certain small offerings






46. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






47. It regulates chemical substances






48. The obligation to establish his claims first






49. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






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