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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. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






2. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices






3. 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






4. Prohibits institutions from discrimination related to credit applications






5. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






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






7. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.






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






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






10. Enables debtors to create a repayment plan for certain debts - while still retaining their assets.






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






12. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor






13. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






14. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






15. The standards designed to reduce the presence of pollutants int eh air to levels that are consistent with promoting good health and preserving the environment. States must ensure that they are in compliance with such standards






16. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






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






18. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






19. 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






20. It regulates chemical substances






21. Claims that the defendant has against the plaintiff






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






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

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24. A trust formed to dominate an industry






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






26. 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






27. This is when an assignment is not supported by consideration and is revocable. It will only become irrevocable when (a) the obligor has performed her obligations to the assignee - (b) the assignor delivers the assignment in writing to the assignee -






28. Discrimination based on race or sex






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






30. 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






31. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'






32. 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






33. 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






34. 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






35. 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






36. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






37. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






38. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






39. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






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






41. Any party bringing suit must have standing (the legal right to bring the suit). The plaintiff files a complaint with the trial court setting for the basis of his lawsuit. The court must then issue to the defendant a copy of the complaint and a summon






42. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.






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






44. The Constitution makes treaties the 'supreme law of the land'






45. The person to whom the right is assigned






46. The promisor's failure to perform in accordance with the terms of the contract






47. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






48. When the creditor initiates the proceedings.






49. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






50. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)