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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. A current report required by the Exchange Act






2. 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.






3. 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






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






5. The person who is bringing the suit






6. The creditor's security interest in real property






7. Claims that the defendant has against the plaintiff






8. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






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






10. An annual report required by the Exchange Act






11. 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'






12. 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.






13. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.






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






16. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in

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17. One of the primary federal federal statutes






18. Prohibit discrimination based on pregnancy or childbirth






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






20. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






21. 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.






22. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.

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






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






25. 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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26. 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.






27. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






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






29. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






30. Inadequate warning of danger - which can be construed as a design defect






31. An exemption for transactions involving offerings to employees.






32. 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.






33. Treaties entered into between two nations






34. Prevents discrimination against employees who are 40years old or more






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






36. The obligation to establish his claims first






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






38. The obligee who officially assigned over his rights






39. 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






40. Automatic violations of the Sherman Act






41. They represent the amount of money a party has spent in justifiable reliance on a contract.






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






43. Oversees the purchase and sale of securities






44. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t






45. Actual performance of an obligation






46. 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






47. 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.






48. It is a document containing information that must be delivered to investors prior to their securities' purchase. It is designed to contain all the information that an investor needs to evaluate the security and risk associated with purchasing the sec






49. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p






50. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.