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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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. Laws created by city councils or county boards - aimed at local matters
Ordinances
A motion of summary judgement
The Family and Medical Leave Act
General Agreement on Tariffs and Trades
2. 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
Expectation damages (also known as the 'benefit of the bargain')
National Environmental Policy Act (NEPA)
Bureau of Customs and Border Protection
Unconscionability
3. Securities issued by the federal government - state governments - or any of their subdivision; securities issued by a charitable organization; issued by banks or saving or loan institutions - issued by a receiver or trustee in bankruptcy;. issued wit
Public company
Consequential damages
Exempt securities and transactions
Donee beneficiary
4. The exchange of promises or an exchange of a promise for a performance.
Manufacturing defect
Strict liability
Bargained-for-exchange
Informed consent
5. 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.
Misstatement or omission
Defendant
Regulation A of the Securities Act
Tender offers
6. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)
Common Law
Utilitarianism
Promisee's rights
Uniform Commercial Code ('UCC')
7. 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
Administrative law judges
Treaties authority
Expectation damages (also known as the 'benefit of the bargain')
Res ipsa loquitor
8. 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.
Defined benefit plans
Administrative law judges
Federal circuit court of appeals and the federal court of appeals
'Quid pro quo'
9. This involves filing a registration statement with the SEC - which contains information about the securities to be registered as well as the company that is issuing the security. Included within the registration statement is a prospectus
Securities Act Registration
'Ffour corners'
Gift
Exempt securities and transactions
10. Prohibit mergers and acquisitions that may reduce competition or create a monopoly
Parol Evidence Rule
Priority of secured transactions
Rules of construction
Clayton Act
11. 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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12. 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
Priority of secured transactions
The Council on Environmental Quality
Unemployment compensation laws
Clean Water Act
13. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.
Bilateral contract
Collateral
Promisor's rights (in relation to the beneficiary)
Section 12(a)(2)
14. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s
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15. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)
Original jurisdiction
Misappropriation theory
Negative causation
Rule of reason
16. 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.
Implied terms
Who is liable
National Environmental Policy Act (NEPA)
Donee beneficiary
17. Ethical behavior is guided by duties or obligation. John Locke referred to these obligations as 'natural rights' that are natural - universal - and inalienable (as seen in the Declaration of Independence)
Securities and Exchange Commission
Deontological
Counterclaims
Supervening illegality
18. Directors - certain officers - and owners
Rules of construction
Unconscionability
Control persons
Res judicata
19. Both a rejection and termination of the original offer.
Duty to mitigate
Rule 12b (6) motion
Counteroffer
Securities Act
20. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.
Judicial review
Section 12 (a)(1) of the Securities Act
Section 10(b) and Rule 10b-5 of the Exchange Act
Restatement (Second) of Contracts
21. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices
Discovery
Exchange Act Regulations
Appellant
Fair Debt Collection Act
22. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.
Defined benefit plans
Mutual mistake
Fair Credit Reporting Act
Accord
23. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.
Goods
Bilateral contract
Condition
Joint obligation
24. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.
Federal question jurisdiction
Section 701 of the Securities Act
Exempt securities and transactions
Fraud
25. Punitive damage - non-economic damages - and attorneys' fees
Non-recoverable damages
Sham consideration
Unconscionability
Priority of secured transactions
26. A body of rules and system based on the decisions that judges have made in the past about such cases. It originated in England. In the late 1700s - Sir William Blackstone published 'Commentaries on the Law of England' - which provides the most compre
Federal district court
Common Law
Civil liability
Personal jurisdiction
27. 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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28. Only one of the party wants to rescind the contract - which requires legal grounds to do so.
Social Security Act
Unilateral rescission
Legal ethics
Grand jury
29. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for
Private placement
Occupational Safety and Health Administration (OSHA)
Attachment
Promise
30. It is a document containing information that must be delivered to investors prior to their securities' purchase. It is designed to contain all the information that an investor needs to evaluate the security and risk associated with purchasing the sec
Res judicata
Prospectus
Demand assurance
Undue influence
31. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.
Product liability
Employment law
Diversity jurisdiction
Remand
32. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.
Informed consent
Misappropriation theory
Exchange Act Regulations
Burden of proof
33. They represent the amount of money a party has spent in justifiable reliance on a contract.
Jurisdiction
Injunction
Reliance damages
Complete or total integration
34. 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
Informed consent
Companies that are subject to the exchange act (Reporting companies)
Implied terms
Security interest
35. 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
Statute of limitations
Illusory promise
Rule 144 of the Securities Act
Short swing profits
36. The difference between the value of the property as substantially complete and the value of the property upon full performance
Diminution in value
Corporate social responsibility
Federal district court
Liquidated damages clause
37. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.
Limited jurisdiction
'due process'
Promise
Section 12(a)(2)
38. It represents notice that a lawsuit has been filed against the defendant
Misappropriation theory
Summons
Civil Law
A motion of summary judgement
39. 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
Affirm or disaffirm
Section 5 of the Securities Act
The Council on Environmental Quality
Trademark
40. It is an action to avoid unjust enrichment.
Process of assignment
Non-recoverable damages
Restitution
Goods
41. Prohibit discrimination based on pregnancy or childbirth
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Accredited investor
Pregnancy Discrimination ACt
Legal ethics
42. A quarterly report required by the Exchange Act
Gift
Short swing profits
Toxic Substances Control Act
10-Q
43. 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.
'meeting of the minds'
Federal Insurance Contributions Act
Trademark
Complete or total integration
44. An intent to deceive or defraud
Joint obligation
'clear and present'
Promise
Scienter
45. Twelve members of jury that hear the evidence at the trial court. The Judge rules on the evidence and guides the jury on questions of law and proper rules of procedure.
Assignee's rights
National Ambient Air Quality Standards
Defenses against liability of misrepresentations or omissions
Petit jury
46. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards
Social entity or stakeholder theory of the corporation
Mutual rescission
Occupational Safety and Health Act
Obligor's rights
47. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration
Exempt securities and transactions
Termination of an invitation to make an offer
Social Security Act
Condition concurrent
48. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market
Resource Conservation and Recovery Act
Statute of limitations
Stare decisis
Reliance
49. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)
Exclusive dealing agreement
Beneficiary's rights
Condition subsequent
Novation
50. 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
Corporate social responsibility
Objective standard
Injunction
National Treatment