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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. An exemption for transactions involving offerings to employees.






2. 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






3. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






4. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.






5. A supervening stature makes a contract illegal - and thereby makes performance impossible






6. Negative causation - due diligence defense - ...






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






8. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






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






10. A creditor that does not have a security interest in any of the debtor's property or assets.






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






12. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






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






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






15. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






16. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






17. A group of between 16 and 23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime. A grand jury is required in the 5th Amendment for all criminal cases. The grand jury has the power to subpoena witnesses and doc






18. The US appeals or appelate court. If a party appeals the district court's decision - it can be brought to the federal court of appeals or the federal court of appeals. It has appellate jurisdiction.






19. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).






20. Grants employees the right to bargain as a group and to establish - join - or assist labor organizations or unions. It requires the employers to bargain directly with the employees' representative. It establishes guidelines for the kinds of activitie






21. 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)






22. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable






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






24. 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






25. The power of the Supreme Court to review federal or state law as constitutional or not. It is the result of the 'Marbury v Madison' case.






26. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'






27. 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






28. 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)






29. 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






30. 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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31. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.






32. 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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33. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.






34. A condition that occurs at the same time as performance






35. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






36. 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)






37. 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






38. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable






39. 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 -






40. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






41. It represents a request for the court to take some action. A motion can be filed by a defendant.






42. When the debtor voluntarily initiates the bankruptcy proceedings






43. 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.






44. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






45. Prohibits differences in wages based on the gender of men and women who perform substantially same work.






46. It is the period in which a person may bring her claim. A contract becomes unenforceable after the statute of limitations has expired. A new contract must be created






47. 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.






48. 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






49. 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






50. Legally recognized injury