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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. 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






2. A motion claiming that the plaintiff has not established enough evidence to prove her case. The motion can be made by the defendant when the plaintiff has finished completed presenting the case.






3. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

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4. The right of both parties to gain information concerning the other party and her witnesses.






5. It is the opportunity for each party to present their arguments to the appellate court. However - it is not always allowed.






6. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -






7. Negative causation - due diligence defense - ...






8. 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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9. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).






10. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






11. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired






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






13. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






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






15. When both parties are mistaken - the mistake concerns a basic assumption on which the contract was made that has material impact on performance - and the party seeking to avoid performance has not assumed the risk of the mistake. Contract is voidable






16. When a control makes a profit purchasing and selling her shares within a six-month period






17. 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.






18. 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






19. 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






20. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.






21. 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.'






22. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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23. 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.






24. Establishes that federal and state courts do not have jurisdiction over cases against a foreign nation. Immunity ends if the commercial activity occurred in the US - actions in the US based on commercial activities abroad - or commercial activities a






25. A trust formed to dominate an industry






26. 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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27. 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.






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






29. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






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






32. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






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






34. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed






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






36. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






37. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






38. A party's damage award will be reduced by any loss he did or could have avoided.






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






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






41. An exemption for certain small offerings






42. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p






43. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other






44. The person who assigns her rights






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

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






47. 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






48. 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






49. A distinct mark or symbol that identifies a business and its products






50. 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