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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 assertion that is not in accord with the facts. A contract becomes voidable when it is shown that a misrepresentation was made - it was material - and the party seeking avoidance reasonably relied on it.






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






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






4. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






5. A party's damage award will be reduced by any loss he did or could have avoided.






6. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.






7. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.






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






9. It regulates chemical substances






10. Misrepresentation that was made with intent






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






12. Speech regarding commercial or economic activities. Congress has a broad ability to regulate commercial speech. (However - government regulations based on content are subject to strict scrutiny - meaning that they will be sustained only if they are n






13. 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.






14. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen






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






16. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






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






18. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'






19. The proceeding for a supervised reorganization of the debtor's business. The debtor must present a plan of reorganization to the bankruptcy court. After 120 days - creditors have the right to present competing plans. The court makes the final determi






20. 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






21. A trust formed to dominate an industry






22. A supervening stature makes a contract illegal - and thereby makes performance impossible






23. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






24. 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






25. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






26. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.






27. Punitive damage - non-economic damages - and attorneys' fees






28. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






29. 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






30. The documents that parties file in connection with their lawsuit






31. 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)






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






33. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.






34. A misrepresentation made with knowledge of its inaccuracy






35. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions






36. Consideration means that there must be a bargained-for-exchange - and the promisee must incur some legal detriment. Consideration is necessary for a person seeking to enforce a contract. Courts generally do not evaluate the adequacy of the considerat






37. 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.






38. This regulate the discharge of pollutants into the water. It authorizes the EPA (Environmental Protection Agency) to determine the permissible levels of contaminants in the water to ensure a safe water supply - and to set standards aimed at meeting t






39. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






40. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of






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






42. 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






43. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'






44. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






45. An agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money. In the event of a default - the security interest allows the creditor to take possession of the property/asset in order to






46. 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






47. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres

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48. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






49. Discrimination based on race or sex






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