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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. When the creditor initiates the proceedings.






2. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






3. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






4. 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)






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






6. A company subject to the Exchange Act






7. 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






8. Prohibit discrimination based on pregnancy or childbirth






9. 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.






10. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






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






12. The person who is bringing the suit






13. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






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






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






16. The first court to consider an action






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






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






19. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.






20. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time

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21. Safeguards consumer's personal information by ensuring that financial institutions that have access to private financial information have protection plans for that information - ensures that consumers receive better disclosure regarding a financial i






22. Treaties entered into between two nations






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






24. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions






25. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.






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






27. 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






28. One of the primary federal federal statutes






29. 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.






30. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)






31. The person who assigns her rights






32. The person to whom the right is assigned






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






34. Revocability relates to situations when an assignment can be taken away from the assignee. When an assignment is supported by consideration - it irrevocable - and vice-versa. If an assignment is irrevocable - then the assignor does not have the right






35. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






36. 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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37. Actions designed to permanently reduce the health and safety risk associated with the site.






38. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






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






40. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d






41. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.






42. 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)






43. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.






44. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






45. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






46. 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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47. Regulates radio - television - and other forms of interstate communications






48. When the plaintiff's damages were caused by something other than the misrepresentation or omission






49. A quarterly report required by the Exchange Act






50. 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