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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. Ensures fair disclosure of credit terms - thereby protecting consumers from inaccurate and unfair billing and credit card practices






2. The creditor's security interest in real property






3. 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






4. A company becomes a 'public company' when it issues its securities pursuant to this registration process.






5. Actions designed to permanently reduce the health and safety risk associated with the site.






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






7. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.






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






9. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






10. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






11. Prohibits institutions from discrimination related to credit applications






12. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






13. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.

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14. It represents notice that a lawsuit has been filed against the defendant






15. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






16. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for






17. 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.






18. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration






19. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






20. Laws created by city councils or county boards - aimed at local matters






21. 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.






22. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.






23. The person who assigns her rights






24. Establishes certain rules for the proper resale - including the requirement that such securities must be held for at least one year - and sold through a broker in a transaction that involves a limited percentage of securities.






25. 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)






26. The person who is bringing the suit






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






28. Directors - certain officers - and owners






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






30. Claims that the defendant has against the plaintiff






31. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior






32. 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).






33. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






34. 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






35. The person being sued






36. An anti-discrimination law that prohibits employment discrimination based on race - color - religion - sex - and national origin. This prohibits discrimination in hiring - firing - recruiting - and compensation. Prohibit sexual harassment or requesti






37. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






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






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






40. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






41. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th






42. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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43. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






44. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion






45. 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






46. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired






47. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






48. 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






49. An agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money. In the event of a default - the security interest allows the creditor to take possession of the property/asset in order to






50. This is when the appellate court send the case back to the lower court for a new trial.