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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. When the creditor initiates the proceedings.






2. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






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






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






5. Directors - certain officers - and owners






6. Consent after the lawyer has adequately informed the client about the conflict and not only has explained to her the material risk associated with the conflict but also has made available her reasonable alternatives to the proposed conflict






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






8. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






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






10. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






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






12. 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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13. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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14. Not discriminating against foreign product - thereby treating all products within their border equally






15. The person to whom the right is assigned






16. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






17. An exemption for offerings that occur primarily within one state.






18. 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






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






20. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






21. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






22. Prohibits institutions from discrimination related to credit applications






23. Liability imposed on sellers and other for compensating people who have been injured as the result of defective product. Liability actions can be brought as tort or contract claims (breach of warranty).






24. A trivial defect in performance (the opposite of material breach).






25. A condition that occurs at the same time as performance






26. A pre-trial motion when the pleadings are vague or ambiguous.






27. Legally recognized injury






28. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions






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






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






31. Administers federal labor laws






32. 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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33. 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






34. Oversees implementation of this benefit program of the Social Security Act






35. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.






36. 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

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37. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).






38. 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.






39. A trust formed to dominate an industry






40. The proceeding for a supervised reorganization of the debtor's business. The debtor must present a plan of reorganization to the bankruptcy court. After 120 days - creditors have the right to present competing plans. The court makes the final determi






41. An intent to deceive or defraud






42. It is an action to avoid unjust enrichment.






43. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






44. 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






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






46. Regulates radio - television - and other forms of interstate communications






47. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






48. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)






49. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






50. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd