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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. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable
Motion of directed verdict or of dismissal
Fair Debt Collection Act
Charitable contributions
'in pari delicto'
2. 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
3. When a product is incorrectly manufactured that is unreasonably dangerous to consumers. To prove that 'unreasonably dangerous' - the show that an ordinary consumer would see it that way (consumer expectation test).
Joint obligation
Shareholder primacy
Manufacturing defect
Condition
4. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions
Nonexpertized portions
Breach
Condition precedent
Contract
5. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.
Assignee
Consumer protection
Material breach
Attachment
6. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.
Employment law
Enabling acts
Process of assignment
General Agreement on Tariffs and Trades
7. Only one of the party wants to rescind the contract - which requires legal grounds to do so.
Unilateral rescission
United States Bankruptcy Code ('Code')
Consequential damages
Intended beneficiaries of government contract
8. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired
'clear and present'
Unilateral rescission
Fair Labor Standards Act (FLSA)
Unilateral mistake
9. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.
Answer
Foreign Sovereign Immunities Act
Per se
Rules of interpretation of a contract by a court
10. They represent the amount of money a party has spent in justifiable reliance on a contract.
Materiality
Reliance damages
Occupational Safety and Health Act
Equal protection
11. A party's damage award will be reduced by any loss he did or could have avoided.
Revocation
Duty to mitigate
Fair Labor Standards Act (FLSA)
Quasi-contract
12. Created through the Occupational Safety and Health Ac. It is federal administrative agency that works with employers and employees to ensure compliance with workplace safety standards. It requires employers to maintain information on employee acciden
Specialized federal courts
Bureau of Customs and Border Protection
Occupational Safety and Health Administration (OSHA)
Creditor
13. It focuses on the clean up of abandoned or historical hazardous waste sites - for which it established a 'Superfund'. The EPA (Environmental Protection Agency) identifies particularly egregious sites and places them on a National Priorities List. The
Materiality
Material breach
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Res judicata
14. 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 -
Intended beneficiary
Joint obligation
Pre-existing duty
Chapter 13 of the Code
15. A situation where one person unfairly benefits from a transaction
Unjust enrichment
Bona fide occupational qualification
Security agreement
Post-trial motions
16. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.
Federal Trade Commission (FTC)
Title VII of the Civil Rights Act of 1964
Trial court
Pregnancy Discrimination ACt
17. A company subject to the Exchange Act
Contract law
Uniform Laws
Tie-in agreement
Reporting company
18. Words or actions an individual may have intended - but did not communicate
Restitution and rescission
Process of assignment
Subjective intent
Environmental Protection Agency (EPA)
19. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof
Accord
Federal Trade Commission
Prosecution
A motion of summary judgement
20. Rules of ethics that govern the practice of law and the conduct of lawyers
Legal ethics
Prosecution
Equal Credit Opportunity Act
Reporting company
21. 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
22. The power of the Supreme Court to review federal or state law as constitutional or not. It is the result of the 'Marbury v Madison' case.
Judicial review
Legal detriment
Exclusive distributor agreements
Duty to mitigate
23. A beneficiary's rights vest when she (a) manifests her assent to the contract - (b) brings suit to enforce the contract - or (c) materially changes her position justifiable reliance on the contract. Once the beneficiary's rights have vested - the con
24. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time
25. Regulates radio - television - and other forms of interstate communications
Federal Communications Commission
Condition subsequent
Writ of habeas corpus
Civil liability
26. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.
Preponderance of evidence
'Definite and certain'
Clean Air Act
Export Administration Regulations (EAR)
27. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).
Control persons
Unilateral rescission
Affirm or disaffirm
Employee Retirement Income Security Act (ERISA)
28. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.
Securities
Export Administration Regulations (EAR)
Section 10(b) and Rule 10b-5 of the Exchange Act
Defined contribution plan
29. 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
30. 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.
31. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan
When an assignment becomes void
Design defect
The Social Security Administration
Limited jurisdiction
32. When the debtor voluntarily initiates the bankruptcy proceedings
The Statute of Frauds
Gramm-Leach-Bliley Act
Voluntarily proceeding
Manufacturing defect
33. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)
Motion
Misrepresentation
Unilateral rescission
Exclusive distributor agreements
34. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)
Monopoly
Misstatement or omission
Unilateral contract
Bargained-for-exchange
35. 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
Condition subsequent
Malpractice
Discovery
The Statute of Frauds
36. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'
Ordinances
Contracts that prohibit assignment
Changed circumstances that allow a party to be excused from performance under the contract
Implied terms
37. An order prohibiting a party from engaging in certain conduct. A count will only issue an injunction if the damage remedy is inadequate and the injunction is necessary to prevent irreparable harm to the non-breaching party.
Creditor
Rules of interpretation of a contract by a court
Employment discrimination
Injunction
38. A group of between 16 and 23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime. A grand jury is required in the 5th Amendment for all criminal cases. The grand jury has the power to subpoena witnesses and doc
Toxic Substances Control Act
Rule 12b (6) motion
Grand jury
'Infants' or 'minors'
39. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws
Bargained-for-exchange
Equal protection
Securities and Exchange Commission
Rules of construction
40. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.
Section 12(a)(2)
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Federal Insurance Contributions Act
Proxy
41. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.
Concurrent conflict of interests
'Quid pro quo'
Diminution in value
Jurisdiction
42. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.
Rules of interpretation of a contract by a court
Production quotas
Deliberation
Rule 506 of Regulation D of the Securities Act
43. Defenses that would prevent the plaintiff from holding the defendant liable
Commercial speech
Process of appealing a case through the three levels of court
Truth in Lending Act
Affirmative defenses
44. 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
Contracts that prohibit assignment
Quasi-suspect classification
'due process'
Mutual mistake
45. The person who assigns her rights
Regulation S of the Securities Act
Clean Water Act
Obligee
Vertical agreements
46. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.
Duty to mitigate
Employee-at-will
Specific performance
Utilitarianism
47. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).
Section 5 of the Securities Act
Age Discrimination in Employment Act (ADEA)
Attachment
Accord
48. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.
Substitutes of consideration
Duty to mitigate
Sham consideration
Subject matter jurisdiction
49. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.
50. 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
Mutual assent
Section 12 (a)(1) of the Securities Act
Donee beneficiary
Rules of interpretation of a contract by a court