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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. 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






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






3. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






4. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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






6. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of






7. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






8. It is a promise stated in words - either oral or written.






9. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu






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






11. 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






12. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






13. 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






14. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.

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15. 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






16. 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.






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






18. 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






19. 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






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






21. Misrepresentation that was made with intent






22. 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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23. 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






24. A creditor that does not have a security interest in any of the debtor's property or assets.






25. 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






26. It regulates chemical substances






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






28. The creditor's right to take possession of the property is called foreclosure






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






30. 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






31. Offering made to purchase all or a portion of the shares of a specific company






32. If the promisor substantially performs under teh contract






33. 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






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






35. A person who is not an intended beneficiary






36. 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






37. Discrimination based on race or sex






38. Oversees the purchase and sale of securities






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






40. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






41. One party made a mistake - the mistake concerns a basic assumption on which the contract was made that has a material impact on performance - the party seeking to avoid performance has not assumed the risk of the mistake - and equities favor avoidanc






42. He has the enforceable right against the obligor because he is considered the real party interest.

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43. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






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






45. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.






46. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach






47. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






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






49. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.






50. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.