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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 test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






2. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






3. Obtaining consumer's private financial information under false pretenses






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






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






6. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






7. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






8. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






9. The exchange of promises or an exchange of a promise for a performance.






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






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






12. 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






13. 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






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






15. Punitive damage - non-economic damages - and attorneys' fees






16. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.






17. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t






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






19. 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)






20. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






21. 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






22. Regulates the handling of the pesticides being exported from and imported into the U.S.






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






24. Seeks to promote market economics and democratic governments






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






26. Ethical behavior is guided by duties or obligation. John Locke referred to these obligations as 'natural rights' that are natural - universal - and inalienable (as seen in the Declaration of Independence)






27. It regulates chemical substances






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






29. 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






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






31. A motion claiming that the plaintiff has not established enough evidence to prove her case. The motion can be made by the defendant when the plaintiff has finished completed presenting the case.






32. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.






33. It is the period in which a person may bring her claim. A contract becomes unenforceable after the statute of limitations has expired. A new contract must be created






34. One of the primary federal federal statutes






35. A current report required by the Exchange Act






36. A court reference to the notion that there must be mutual agreement about the exchange to be performed

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37. 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






38. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)






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






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






42. The first court to consider an action






43. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for






44. Negative causation - due diligence defense - ...






45. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






46. 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.






47. Treaties between two nations addressing investment concerns






48. The person being sued






49. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






50. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'