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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. When a court believes that a contract is so one-sides and unfair that it would be unconscionable to enforce it. (Two different types are substantive and procedural) A contract becomes voidable






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






3. Actual performance of an obligation






4. 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






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






6. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is






7. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






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






9. Safeguards consumer's personal information by ensuring that financial institutions that have access to private financial information have protection plans for that information - ensures that consumers receive better disclosure regarding a financial i






10. 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






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






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






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






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






15. Not discriminating against foreign product - thereby treating all products within their border equally






16. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






17. The right to hold a security interest on a debtor's property.






18. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.

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19. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage






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






21. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






22. When the creditor initiates the proceedings.






23. 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






24. 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






25. 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






26. Words or actions an individual may have intended - but did not communicate






27. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions






28. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






29. The belief that the corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders. However - laws do not impose this obligation/responsibility






30. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

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31. 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.






32. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o






33. Judges that belong to an administrative agency - to which claims regarding administrative agency rules are brought to.






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






35. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






36. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.

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37. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






38. 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.






39. 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






40. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe






41. Protection of communications between an attorney and her client. Neither party is compelled to disclose such communications to the court. Only the client can waive the privilege.






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






43. 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






44. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.






45. Regulates radio - television - and other forms of interstate communications






46. 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.






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






48. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






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






50. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare