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






2. Agreements between competitors to set particular prices for their products (a horizontal agreement)






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






4. 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






5. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting






6. 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






7. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e






8. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






9. The right of both parties to gain information concerning the other party and her witnesses.






10. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws






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






12. Actual performance of an obligation






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






14. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






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






16. 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






17. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






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






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






20. 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






21. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






22. This is when an assignment is not supported by consideration and is revocable. It will only become irrevocable when (a) the obligor has performed her obligations to the assignee - (b) the assignor delivers the assignment in writing to the assignee -






23. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize






24. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

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






26. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible






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






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






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. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.






31. Regulates air and water pollution as well as address problems associated with certain toxic substances






32. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






33. 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






34. A pre-trial motion when the pleadings are vague or ambiguous.






35. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






36. Laws that provides employees with compensation for a set period of time when they become unemployed through no fault of their own. It is a combined federal and state insurance program in which they both contribute money - along with the employers. Ea






37. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






38. A condition that must occur before a duty to perform arises






39. 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.






40. 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.






41. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






42. 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






43. Rules of ethics that govern the practice of law and the conduct of lawyers






44. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years






45. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






46. The person who assigns her rights






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

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48. Discrimination based on race or sex






49. When the debtor voluntarily initiates the bankruptcy proceedings






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