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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. Prohibits institutions from discrimination related to credit applications






2. Negative causation - due diligence defense - ...






3. 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.






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






5. The promisor can raise any defense against the beneficiary that he would have been able to raise against the promisee. The promisor cannot raise a defense against the beneficiary and the promisee.

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






7. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.






8. 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.






9. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is






10. 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






11. 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






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






13. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.






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






15. Offering made to purchase all or a portion of the shares of a specific company






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






17. It represents a request for the court to take some action. A motion can be filed by a defendant.






18. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






19. Securities issued by the federal government - state governments - or any of their subdivision; securities issued by a charitable organization; issued by banks or saving or loan institutions - issued by a receiver or trustee in bankruptcy;. issued wit






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






21. When the debtor voluntarily initiates the bankruptcy proceedings






22. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






23. 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).






24. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches

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






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






27. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






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






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






30. The party seeking to appeal the previous court's decision






31. 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






32. Automatic violations of the Sherman Act






33. Ethical behavior in terms of its consequences ('the end justifies the means')






34. 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






35. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






36. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th






37. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






38. A party's damage award will be reduced by any loss he did or could have avoided.






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






41. 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

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






43. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im






44. The person who is bringing the suit






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






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






47. Claims that the defendant has against the plaintiff






48. 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.






49. 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






50. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

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