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






2. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






3. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor






4. Prohibit discrimination based on pregnancy or childbirth






5. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






6. The creditor's security interest in real property






7. It represents the defendant's request for a new proceeding to determine if he is being unlawfully deprived of his liberty. It is limited to people in custody. It can only be used after all other methods have been exhausted.






8. 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






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






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






12. A misrepresentation made with knowledge of its inaccuracy






13. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






14. If the promisor substantially performs under teh contract






15. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






16. Grants employees the right to bargain as a group and to establish - join - or assist labor organizations or unions. It requires the employers to bargain directly with the employees' representative. It establishes guidelines for the kinds of activitie






17. 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






18. Laws that states have passed that aim at regulating securities transactions within their states.


19. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






20. 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






21. Treaties between two nations addressing investment concerns






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






23. When the creditor initiates the proceedings.






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






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






26. A current report required by the Exchange Act






27. The primary doctrine used to substitute for consideration is promissory estoppel or detrimental reliance. Under that doctrine - a promise will be enforced without consideration under the following conditions: (a) The promisor should reasonably expect






28. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






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






30. 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






31. Institutional investors - people with over a million dollars in net worth - venture capital firms - trusts with assets over $5 million - directors and executive officers of the issuing company - and other specified investors.






32. When a product is incorrectly manufactured that is unreasonably dangerous to consumers. To prove that 'unreasonably dangerous' - the show that an ordinary consumer would see it that way (consumer expectation test).






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






34. It represents notice that a lawsuit has been filed against the defendant






35. The Constitution makes treaties the 'supreme law of the land'






36. This is when the appellate court send the case back to the lower court for a new trial.






37. 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






38. A situation where one person unfairly benefits from a transaction






39. When both parties agree to rescind the contract






40. The promisor's failure to perform in accordance with the terms of the contract






41. 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






42. Regulates trusts and monopolies






43. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






44. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






45. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






46. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.






47. 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






48. A condition that cuts off a pre-existing duty






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






50. When the plaintiff's damages were caused by something other than the misrepresentation or omission