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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 agreement of when the promisee agree to accept different performance from the original promisor in exchange for a release of the original agreement. However - the original obligation is not discharged until there has been satisfaction.






2. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.






3. 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.






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






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






7. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






8. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im






9. It regulates chemical substances






10. The party that won in the previous court trial - but the other party is appealing the decision.






11. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.






12. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






13. Automatic violations of the Sherman Act






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






15. When a product is incorrectly manufactured that is unreasonably dangerous to consumers. To prove that 'unreasonably dangerous' - the show that an ordinary consumer would see it that way (consumer expectation test).






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






17. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.






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






19. 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






20. If the promisor substantially performs under teh contract






21. A misrepresentation made with knowledge of its inaccuracy






22. A person who is not an intended beneficiary






23. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






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






25. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.






26. 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






27. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






28. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






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






30. He can raise any defense against the assignee that she would have been able to raise against the assignor. This is the right to offset the assignee's claim - and thus the assignee cannot be held directly liable to the assignor for the improper action

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31. 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






32. A court reference to the notion that there must be mutual agreement about the exchange to be performed

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






34. (an exception to Title VII) Discrimination is permitted because of the occupation qualifications






35. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.






36. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.






37. Actions designed to permanently reduce the health and safety risk associated with the site.






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






39. 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






40. 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






41. 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






42. An exemption for offerings that occur primarily within one state.






43. 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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44. 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.






45. Enacted in 1969 to protect the environment from the actions of public or private actors. It declared a policy and promoted efforts to prevent or eliminate environmental damage. It also ensures that public and private actors better understand the ecol






46. 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.






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






48. It is an action to avoid unjust enrichment.






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






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