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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 the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.






2. 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.






3. The party seeking to appeal the previous court's decision






4. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws






5. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






6. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






7. 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






8. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan






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






10. 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.






11. 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'






12. The right of both parties to gain information concerning the other party and her witnesses.






13. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






14. Legally recognized injury






15. 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






16. One of the primary federal federal statutes






17. After taking the case to the federal district court - the party has the right to appeal to the federal circuit court of appeals. there are twelve federal appeals courts that hear cases from several different district courts within a specific geograph






18. 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.






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






20. 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'






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






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






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






24. A quarterly report required by the Exchange Act






25. The party that won in the previous court trial - but the other party is appealing the decision.






26. 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






27. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou






28. 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






29. He has the enforceable right against the obligor because he is considered the real party interest.

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30. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section






31. The property that is the subject of a security interest






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






33. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






34. Automatic violations of the Sherman Act






35. Claims that the defendant has against the plaintiff






36. 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






37. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






38. 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






39. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






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






41. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






42. The creditor's security interest in real property






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






44. 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)






45. The agreement to create a security interest






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






47. 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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48. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im






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






50. A supervening stature makes a contract illegal - and thereby makes performance impossible