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






2. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






3. 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






4. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






5. 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






6. 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.'






7. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






8. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






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






10. The right to hold a security interest on a debtor's property.






11. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






12. Inadequate warning of danger - which can be construed as a design defect






13. Actual performance of an obligation






14. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






15. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

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16. When the creditor initiates the proceedings.






17. 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.






18. 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






19. Regulates the handling of the pesticides being exported from and imported into the U.S.






20. The obligee who officially assigned over his rights






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






22. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.






23. 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






24. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






25. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






26. 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






27. It represents a request for the court to take some action. A motion can be filed by a defendant.






28. 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.






29. 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






30. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover






31. Establishes that federal and state courts do not have jurisdiction over cases against a foreign nation. Immunity ends if the commercial activity occurred in the US - actions in the US based on commercial activities abroad - or commercial activities a






32. An exemption for certain small offerings






33. This sets standards for federal agency rule making as well as standards for hearings conducted by such agencies. A court appeal is not allowed until all administrative remedies have been exhausted. Courts do not overturn agency actions unless they ar






34. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






35. 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.






36. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)






37. 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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38. Regulates trusts and monopolies






39. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






40. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






41. If the promisor substantially performs under teh contract






42. When the jury retires to a separate room to decide the outcome of the case.






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






44. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p






45. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






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






47. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






48. 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.






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. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations