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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. 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.






2. Employers make payments to retired employees based on the length of their employment and the wages they received.






3. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach






4. The exchange of promises or an exchange of a promise for a performance.






5. 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.






6. 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






7. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






8. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






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






10. Torts and contracts... represents law that regulates the relationships between parties.






11. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






12. Discrimination based on race or sex






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






14. 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.






15. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






16. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






17. Negative causation - due diligence defense - ...






18. A current report required by the Exchange Act






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






20. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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21. The first court to consider an action






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






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






24. Regulates trusts and monopolies






25. Consideration means that there must be a bargained-for-exchange - and the promisee must incur some legal detriment. Consideration is necessary for a person seeking to enforce a contract. Courts generally do not evaluate the adequacy of the considerat






26. 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






27. An exemption for certain small offerings






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






29. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.






30. Both a rejection and termination of the original offer.






31. 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






32. 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






33. 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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34. An exemption for securities sold outside of the U.S.






35. Duties that involve some personal service or skill or that would materially change the obligor's expectancy under the contract may not be delegated without the obligee's consent. When a contract prohibit assignment - then it also cannot be delegated.






36. 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






37. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres

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38. 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.






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






40. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen






41. An agreement of when the promisee agree to accept different performance from the original promisor in exchange for a release of the original agreement. However - the original obligation is not discharged until there has been satisfaction.






42. 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






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






44. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is






45. 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






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






47. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)






48. 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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49. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






50. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.