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






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






3. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration






4. 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.






5. 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.






6. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






7. When both parties agree to rescind the contract






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






9. The person to extends credit or a loan - and hence the person to whom a debt is owed






10. Discrimination based on race or sex






11. 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






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






13. 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.






14. A person who is not an intended beneficiary






15. 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.'






16. An exemption for securities sold outside of the U.S.






17. 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.






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






19. 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 -






20. It represents notice that a lawsuit has been filed against the defendant






21. 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






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






23. Regulates the handling of the pesticides being exported from and imported into the U.S.






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. They represent the amount of money a party has spent in justifiable reliance on a contract.






26. 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.






27. A promise that is inferred from a person's conduct or the circumstances of the transaction






28. The person being sued






29. Place of permanent residence






30. 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






31. 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






32. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






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






34. 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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35. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






36. This takes place when a crime has been committed against the state. In this case - there is a prosecution - which writes an indictment and sends it to the grand jury. If the grand jury decides that there is sufficient evidence - it will return the pr






37. Manages the nation's social security system






38. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






39. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches

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40. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for






41. 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






42. If the promisor substantially performs under teh contract






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






44. Prevents discrimination against employees who are 40years old or more






45. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)






46. Ethical behavior in terms of its consequences ('the end justifies the means')






47. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.






48. Claims that the defendant has against the plaintiff






49. 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






50. 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