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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. Claims that the defendant has against the plaintiff






2. Discrimination based on race or sex






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






4. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.






5. Legally recognized injury






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






7. It is an action to avoid unjust enrichment.






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






9. Treaties entered into between two nations






10. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.






11. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)






12. When the jury retires to a separate room to decide the outcome of the case.






13. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years






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






15. 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).






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






18. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






19. An exemption for offerings that occur primarily within one state.






20. 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 -






21. 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.






22. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.






23. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)






24. 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






25. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






26. 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






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

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28. An assertion that is not in accord with the facts. A contract becomes voidable when it is shown that a misrepresentation was made - it was material - and the party seeking avoidance reasonably relied on it.






29. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)






30. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






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






32. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.






33. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






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






35. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






36. 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






37. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.

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38. 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.






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






40. 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






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






42. 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






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






44. 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






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






46. It regulates chemical substances






47. 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.






48. Ensures fair disclosure of credit terms - thereby protecting consumers from inaccurate and unfair billing and credit card practices






49. Prevents discrimination against employees who are 40years old or more






50. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.

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