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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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 power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting
Federal question jurisdiction
Accredited investor
Plaintiff
Proxy
2. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -
Title VII of the Civil Rights Act of 1964
Intended beneficiary
Mutual assent
Toxic Substances Control Act
3. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.
Contracts that prohibit assignment
Changed circumstances that allow a party to be excused from performance under the contract
Equal protection
Enabling acts
4. A misrepresentation made with knowledge of its inaccuracy
National Environmental Policy Act (NEPA)
Scienter
The Council on Environmental Quality
Design defect
5. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act
Intended beneficiary
National Institute for Occupational Health
Environmental Protection Agency
Equity of redemption
6. A situation where one person unfairly benefits from a transaction
Secured transaction
10-Q
Strict liability
Unjust enrichment
7. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired
Vesting of beneficiary's rights
Fair Debt Collection Act
Federal Rules of Civil Procedures
Fair Labor Standards Act (FLSA)
8. The person to whom the right is assigned
Accredited investor
Assignee
Public company
Discharge of contract
9. 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.
10. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover
Deliberation
Intended beneficiaries of government contract
Occupational Safety and Health Administration (OSHA)
Uniform Commercial Code ('UCC')
11. 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).
Manufacturing defect
Appellate jurisdiction
Civil Law
Social Security Administration
12. 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
Attachment
Pension Benefit Guaranty Corporation (PBGC)
Section 4 of the Securities Act
Taking a contract 'out of the Statute of Frauds'
13. Prohibit mergers and acquisitions that may reduce competition or create a monopoly
Taking a contract 'out of the Statute of Frauds'
Rules of construction
Clayton Act
Chapter 13 of the Code
14. The documents that parties file in connection with their lawsuit
Attorney/client privilege
Exempt securities and transactions
Total breach
Pleadings
15. An exemption for offerings that occur primarily within one state.
Assignee
Rule 147 of the Securities Act
Delegation
Statute of limitations
16. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -
Res ipsa loquitor
Supreme Court powers
Appellate jurisdiction
Manufacturing defect
17. 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
'Takings'
Bureau of Customs and Border Protection
Obligor
Consideration
18. 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
Occupational Safety and Health Administration (OSHA)
Parol Evidence Rule
Equity of redemption
Treaties authority
19. 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.'
Multilateral treaties
Environmental Protection Agency
Offer
Implied terms
20. It represents notice that a lawsuit has been filed against the defendant
Res judicata
Summons
Criminal Trial
Mutual assent
21. It is a document containing information that must be delivered to investors prior to their securities' purchase. It is designed to contain all the information that an investor needs to evaluate the security and risk associated with purchasing the sec
Rule 504 of Regulation D of the Securities Act
Perfected
10-K
Prospectus
22. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'
Bilateral investment treaties
Changed circumstances that allow a party to be excused from performance under the contract
Rule 147 of the Securities Act
Assignment of rights
23. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).
Shareholder primacy
Employee-at-will
Rule 144 of the Securities Act
Standing
24. 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.
Social Security Administration
Reliance damages
Condition subsequent
Accord
25. The difference between the value of the performance a party should have received and the value of the performance the party actually received.
Exchange Act Regulations
Securities Exchange Act of 1934
Direct damages
Rule 147 of the Securities Act
26. A company becomes a 'public company' when it issues its securities pursuant to this registration process.
Pleadings
Americans with Disabilities Act (ADA)
Public company
Beneficiary's rights
27. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)
Assignee's rights
'Quid pro quo'
Affirm or disaffirm
Unilateral contract
28. Oversees implementation of this benefit program of the Social Security Act
'Blue sky' laws
Horizontal agreement
Production quotas
Social Security Administration
29. Agreements between competitors to set particular prices for their products (a horizontal agreement)
Price fixing
Assignee
Obligor's rights
National Institute for Occupational Health
30. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws
Securities and Exchange Commission
Stare decisis
Penalty
Bilateral investment treaties
31. The right to hold a security interest on a debtor's property.
Regulation S of the Securities Act
Market division
Lien
Clean Air Act
32. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.
Affirmative defenses
Organization for Economic Co-operation and Development (OECD)
Expertised portion
Superfund
33. Previous decisions made by decisions - by which the current judges must abide by.
Precedent
Rule 506 of Regulation D of the Securities Act
A motion of summary judgement
Federal question jurisdiction
34. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice
Bilateral Investment Treaty program
Quasi-contract
Executed exchange
Total breach
35. 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.
Equity of redemption
Token consideration
Promisee's rights
Who is liable
36. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.
Mental incapacity
Donee beneficiary
National Labor Relations Board (NLRB)
'Quid pro quo'
37. 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
Product liability
Strict liability
Trial court
Expertised portion
38. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres
39. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers
Federal Trade Commission (FTC)
National Labor Relations Board (NLRB)
Scienter
Sherman Act
40. 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
Production quotas
Legal detriment
Common Law
'Infants' or 'minors'
41. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.
42. Prohibits institutions from discrimination related to credit applications
Short swing profits
Illusory promise
National Treatment
Equal Credit Opportunity Act
43. 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
Companies that are subject to the exchange act (Reporting companies)
Pregnancy Discrimination ACt
Organization for Economic Co-operation and Development (OECD)
Rule 504 of Regulation D of the Securities Act
44. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu
Bilateral treaties
Specific performance
Retraction
Statutory Seller
45. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.
Reporting company
Donee beneficiary
Implied contract
Specialized federal courts
46. Treaties entered into between two nations
Misappropriation theory
Motion for a more definitive statement
Penalty
Bilateral treaties
47. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations
Preponderance of evidence
Employment law
Delegation
Unilateral mistake
48. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach
Preponderance of evidence
Clayton Act
Monopoly
Economic waste
49. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards
Mutual assent
Mutual mistake
Occupational Safety and Health Act
Misstatement or omission
50. 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
Rule of reason
Affirm or disaffirm
Levels of courts
Misappropriation theory