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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. The obligor does not need to provide consent - but does need to be given notice.






2. 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






3. 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






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






5. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.






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






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






8. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend






9. Automatic violations of the Sherman Act






10. Directors - certain officers - and owners






11. An exemption for securities sold outside of the U.S.






12. When there is no bargained-for exchange - because there is no exchange.






13. Potential responsibility for payment of damages or other court - ordered enforcement as a result of a ruling in a lawsuit. Civil liability is not the same as criminal liability - which means 'open to punishment for a crime.'






14. A creditor that does not have a security interest in any of the debtor's property or assets.






15. It is a promise stated in words - either oral or written.






16. Prohibits institutions from discrimination related to credit applications






17. 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






18. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






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






20. 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






21. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






22. The obligee who officially assigned over his rights






23. Administers federal labor laws






24. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






25. It is a pre-trial motion to take out certain matters






26. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e






27. Contracts that are formed for the intended benefit of some third party.






28. 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'






29. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






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






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

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






33. 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






34. All total breaches are material breaches. However - a total breach have factors including whether there is a likelihood of a cure - further delay will prevent the promisee from making alternative arrangements - or prompt performance is a critical ele






35. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






36. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.






37. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






38. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






39. 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






40. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






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






42. 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.






43. The written set of charges against the defendant - which is presented to a grand jury.






44. 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






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






46. 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






47. (an exception to Title VII) Discrimination is permitted because of the occupation qualifications






48. 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'






49. When a court believes that a contract is so one-sides and unfair that it would be unconscionable to enforce it. (Two different types are substantive and procedural) A contract becomes voidable






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