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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 perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio






2. 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.






3. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






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






5. 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






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






7. When a party unlawfully indicate that he will not perform when the performance is due.






8. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






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






10. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






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






12. A beneficiary's rights vest when she (a) manifests her assent to the contract - (b) brings suit to enforce the contract - or (c) materially changes her position justifiable reliance on the contract. Once the beneficiary's rights have vested - the con

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






14. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.






15. 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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16. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

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17. Enables debtors to create a repayment plan for certain debts - while still retaining their assets.






18. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time

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






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

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21. Previous decisions made by decisions - by which the current judges must abide by.






22. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






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






24. 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.






25. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.






26. 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






27. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.






28. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






29. 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






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






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






32. Treaties entered into between two nations






33. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).






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






35. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting






36. Discrimination based on race or sex






37. An intent to deceive or defraud






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






39. 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






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. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe






42. Negative causation - due diligence defense - ...






43. 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).






44. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t






45. 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






46. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






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






48. Automatic violations of the Sherman Act






49. When the debtor voluntarily initiates the bankruptcy proceedings






50. 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