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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. 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






2. When the debtor voluntarily initiates the bankruptcy proceedings






3. Establishes that federal and state courts do not have jurisdiction over cases against a foreign nation. Immunity ends if the commercial activity occurred in the US - actions in the US based on commercial activities abroad - or commercial activities a






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






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






6. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.






7. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan






8. 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






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






10. Misrepresentation that was made with intent






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






12. 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






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






14. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






15. The standards designed to reduce the presence of pollutants int eh air to levels that are consistent with promoting good health and preserving the environment. States must ensure that they are in compliance with such standards






16. 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






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






18. It regulates chemical substances






19. 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.






20. 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'






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






22. 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.






23. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th






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. The difference between the value of the property as substantially complete and the value of the property upon full performance






26. 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.






27. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -






28. 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






29. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






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

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31. 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






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






33. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.






34. In some contracts - the parties will stipulate the amount of damages to be awarded upon a breach. The courts will award such amount if the damages were difficult to determine at the time the contract was written - the stipulated amount is a reason fo






35. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






36. 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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37. Laws created by city councils or county boards - aimed at local matters






38. An interest in property or collateral granted in order to ensure payment of a debt or obligation






39. Prohibits institutions from discrimination related to credit applications






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






41. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






42. A misrepresentation made with knowledge of its inaccuracy






43. Contracts that are formed for the intended benefit of some third party.






44. The first court to consider an action






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






46. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other






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






48. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






49. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend






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