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






2. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t






3. A trivial defect in performance (the opposite of material breach).






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






5. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






6. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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7. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.






8. Obtaining consumer's private financial information under false pretenses






9. The obligation to establish his claims first






10. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






11. Potential responsibility for payment of damages or other court - ordered enforcement as a result of a ruling in a lawsuit. Civil liability is not the same as criminal liability - which means 'open to punishment for a crime.'






12. Place of permanent residence






13. 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)






14. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






15. 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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16. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.






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






18. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.






19. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.






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

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21. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






22. The person being sued






23. 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






24. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices






25. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






26. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






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






28. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






29. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts






30. 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.






31. Misrepresentation that was made with intent






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






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






34. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






35. 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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36. 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






37. When the debtor voluntarily initiates the bankruptcy proceedings






38. Treaties among several parties that seek to allocate rights and responsibilities among the parties






39. The written set of charges against the defendant - which is presented to a grand jury.






40. A current report required by the Exchange Act






41. 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






42. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






43. 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






44. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.






45. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)






46. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable






47. Ethical behavior in terms of its consequences ('the end justifies the means')






48. It is a promise stated in words - either oral or written.






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






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