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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 jury retires to a separate room to decide the outcome of the case.






2. The promisor can raise any defense against the beneficiary that he would have been able to raise against the promisee. The promisor cannot raise a defense against the beneficiary and the promisee.

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3. Protection of communications between an attorney and her client. Neither party is compelled to disclose such communications to the court. Only the client can waive the privilege.






4. It represents notice that a lawsuit has been filed against the defendant






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






6. 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.






7. A current report required by the Exchange Act






8. 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






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






10. 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






11. The promisor's failure to perform in accordance with the terms of the contract






12. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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13. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






14. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






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






16. 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)






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






18. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






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






20. An exemption for transactions involving offerings to employees.






21. 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.'






22. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach






23. It regulates chemical substances






24. 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.






25. Seeks to promote market economics and democratic governments






26. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






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






28. This is when the appellate court send the case back to the lower court for a new trial.






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






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






31. Establishes certain rules for the proper resale - including the requirement that such securities must be held for at least one year - and sold through a broker in a transaction that involves a limited percentage of securities.






32. A company becomes a 'public company' when it issues its securities pursuant to this registration process.






33. Duties that involve some personal service or skill or that would materially change the obligor's expectancy under the contract may not be delegated without the obligee's consent. When a contract prohibit assignment - then it also cannot be delegated.






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






35. The person to whom the right is assigned






36. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






37. 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.






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






39. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






40. 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






41. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






42. Laws that states have passed that aim at regulating securities transactions within their states.

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43. The person being sued






44. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






45. A perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio






46. Not discriminating against foreign product - thereby treating all products within their border equally






47. 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






48. 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






49. 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






50. 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