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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. Negative causation - due diligence defense - ...
Regulation A of the Securities Act
Defenses against liability of misrepresentations or omissions
Legal detriment
Product liability
2. An exemption for offerings that occur primarily within one state.
Rule 147 of the Securities Act
Defined benefit plans
Security interest
Collateral
3. If the promisor substantially performs under teh contract
Unconscionability
Novation
Unjust enrichment
Partial or trivial breach
4. Ethical behavior is guided by duties or obligation. John Locke referred to these obligations as 'natural rights' that are natural - universal - and inalienable (as seen in the Declaration of Independence)
Deontological
Lien
Fraud
Tender offers
5. 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
Performance
Grand jury
Defendant
Excuse of condition
6. The person to whom the right is assigned
Section 10(b) and Rule 10b-5 of the Exchange Act
Scienter
Assignee
Rule 144 of the Securities Act
7. Legally recognized injury
Civil Law
Injury-in-fact
Securities
Other constituency statutes
8. A quarterly report required by the Exchange Act
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
Indictment
10-Q
Rational basis test
9. They represent losses that result from other transactions that are dependent upon the breached contract
Expropriation
Consequential damages
Excuse of condition
Levels of courts
10. Constitutes conduct that improper or unethical. A tort action of negligence against lawyers for failing to satisfy their professional duty of care owed to their clients.
Criminal Trial
Malpractice
Priority of secured transactions
Federal Trade Commission
11. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.
Bureau of Customs and Border Protection
Lanham Act
Oral argument
Securities and Exchange Commission
12. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.
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13. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.
Effect of delegation
Superfund
Unilateral mistake
The Family and Medical Leave Act
14. Agreements between buyers and sellers - price-related agreements are per se illegal. Such agreements require court scrutiny based on the rule of reason in order to be held illegal.
Unemployment compensation laws
Prospectus
Trademark
Vertical agreements
15. 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'
Taking a contract 'out of the Statute of Frauds'
Creditor beneficiary
Grand jury
Section 11 of the Securities Act
16. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.
Federal Information Act
Expropriation
Criminal Trial
Judgment n.o.v.
17. An independent federal agency established to promote consumer protection and reduce unfair competition among business.
Motion to strike
Appellee or respondent
Non-recoverable damages
Federal Trade Commission (FTC)
18. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)
Option contract
'in pari delicto'
Taking a contract 'out of the Statute of Frauds'
Monopoly
19. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement
Duress
Revocability
Gramm-Leach-Bliley Act
Retraction
20. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship
Collective bargaining
National Ambient Air Quality Standards
Obligor
Performance
21. The US appeals or appelate court. If a party appeals the district court's decision - it can be brought to the federal court of appeals or the federal court of appeals. It has appellate jurisdiction.
Answer
Federal circuit court of appeals and the federal court of appeals
Intended beneficiaries of government contract
Sherman Act
22. 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.
Federal Insurance Contributions Act
Per se
Fair Labor Standards Act (FLSA)
Supervening illegality
23. Words or actions an individual may have intended - but did not communicate
Other constituency statutes
Consideration
Liquidated damages clause
Subjective intent
24. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in
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25. 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 -
Injury-in-fact
Gratuitous assignment
Illusory promise
Regulation D of the Securities Act
26. They represent the amount of money a party has spent in justifiable reliance on a contract.
Reliance damages
Demurrer
Rule of reason
Criminal Law
27. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t
Specific performance
'clear and present'
Section 7A of the Clayton Act
'in pari delicto'
28. Contracts that are formed for the intended benefit of some third party.
Third party beneficiary
Tie-in agreement
Duty to mitigate
Oral argument
29. 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.
Expectation damages (also known as the 'benefit of the bargain')
Contract law
Misappropriation theory
Demurrer
30. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.
Accredited investor
Remediation
Charitable contributions
Trial court
31. 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
Levels of courts
Common Law
Statute of limitations
Assignee's rights
32. 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
Section 10(b) and Rule 10b-5 of the Exchange Act
Pre-existing duty
Original jurisdiction
Employee Retirement Income Security Act (ERISA)
33. 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.
Judgment n.o.v.
Accord
Duties that cannot be delegated
Obligor
34. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.
Short swing profits
Collective bargaining
'Definite and certain'
Misstatement or omission
35. A misrepresentation made with knowledge of its inaccuracy
Regulation A of the Securities Act
Scienter
Federal Information Act
Informed consent
36. 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
Answer
Diminution in value
Securities Act Registration
Objective standard
37. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.
Section 11 of the Securities Act
Satisfaction
Promise
Secured transaction
38. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'
Assignment of rights
Strict liability
Administrative law judges
Obligor's rights
39. 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
Equity of redemption
'due process'
Voluntarily proceeding
Writ of certiorari
40. 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
Appellate jurisdiction
Exempt securities and transactions
When an assignment becomes void
Rule of reason
41. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired
Fair Labor Standards Act (FLSA)
Fraud
Obligor's rights
Preponderance of evidence
42. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).
Duty to mitigate
Securities Exchange Act of 1934
Section 7A of the Clayton Act
Legal detriment
43. 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
Federal question jurisdiction
Motion of directed verdict or of dismissal
National Ambient Air Quality Standards
Federal circuit court of appeals and the federal court of appeals
44. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)
Diversity jurisdiction
Group boycotts
Duty to mitigate
Rational basis test
45. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)
Assignor
Promise
Federal circuit court of appeals and the federal court of appeals
Appellee or respondent
46. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country
Foreign Corrupt Practices Act
Rule 144 of the Securities Act
Administrative Procedure Act
Content-neutral restrictions
47. 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'
Implied terms
General Agreement on Tariffs and Trades
Standing
Social entity or stakeholder theory of the corporation
48. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.
Equal Pay Act (EPA)
Diminution in value
Restatement (Second) of Contracts
Section 4 of the Securities Act
49. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)
Defendant
Utilitarianism
Strict liability
Criminal Law
50. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state
Model Rules of Professional Conduct
Rational basis test
Answer
Criminal Law