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






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






3. 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)






4. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






5. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






6. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).






7. When the creditor initiates the proceedings.






8. Words or actions an individual may have intended - but did not communicate






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






10. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices






11. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

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12. A condition that must occur before a duty to perform arises






13. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






14. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.






15. The creditor's security interest in real property






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






17. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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18. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.






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






20. They represent losses that result from other transactions that are dependent upon the breached contract






21. Liability extends to ___________ - without the plaintiff needing to proof of reliance or causation. The seller can avoid liability by showing negative causation - the plaintiff knew that the statements in the prospectus at the time of her purchase -






22. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed






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






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






25. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches

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26. 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






27. 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.






28. 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






29. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.






30. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






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






32. The obligation to establish his claims first






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






34. A promise that is inferred from a person's conduct or the circumstances of the transaction






35. The obligee who officially assigned over his rights






36. 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).






37. The documents that parties file in connection with their lawsuit






38. 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






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






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






41. 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.'






42. 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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43. A situation where one person unfairly benefits from a transaction






44. 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






45. 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






46. They represent the amount of money a party has spent in justifiable reliance on a contract.






47. The proceeding for a supervised reorganization of the debtor's business. The debtor must present a plan of reorganization to the bankruptcy court. After 120 days - creditors have the right to present competing plans. The court makes the final determi






48. 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.






49. A contract that is made where two promises are outstanding.






50. 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






Can you answer 50 questions in 15 minutes?



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