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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 obligor does not need to provide consent - but does need to be given notice.






2. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd






3. 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






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






5. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo






6. When a court believes that a contract is so one-sides and unfair that it would be unconscionable to enforce it. (Two different types are substantive and procedural) A contract becomes voidable






7. Treaties among several parties that seek to allocate rights and responsibilities among the parties






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






9. Created through the Occupational Safety and Health Ac. It is federal administrative agency that works with employers and employees to ensure compliance with workplace safety standards. It requires employers to maintain information on employee acciden






10. This regulate the discharge of pollutants into the water. It authorizes the EPA (Environmental Protection Agency) to determine the permissible levels of contaminants in the water to ensure a safe water supply - and to set standards aimed at meeting t






11. 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






12. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con






13. Agreements between buyers and sellers - price-related agreements are per se illegal. Such agreements require court scrutiny based on the rule of reason in order to be held illegal.






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






15. The agreement to create a security interest






16. The promisor's failure to perform in accordance with the terms of the contract






17. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.






18. 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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19. Oversees implementation of this benefit program of the Social Security Act






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






21. 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






22. 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)






23. 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






24. Place of permanent residence






25. 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.'






26. 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.






27. A supervening stature makes a contract illegal - and thereby makes performance impossible






28. An agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money. In the event of a default - the security interest allows the creditor to take possession of the property/asset in order to






29. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






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






31. When a control makes a profit purchasing and selling her shares within a six-month period






32. Misrepresentation that was made with intent






33. 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.

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34. Laws that states have passed that aim at regulating securities transactions within their states.

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






36. 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






37. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).






38. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






39. When the debtor voluntarily initiates the bankruptcy proceedings






40. 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






41. An order prohibiting a party from engaging in certain conduct. A count will only issue an injunction if the damage remedy is inadequate and the injunction is necessary to prevent irreparable harm to the non-breaching party.






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






43. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






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






45. Rules of ethics that govern the practice of law and the conduct of lawyers






46. Discrimination based on race or sex






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






48. An anti-discrimination law that prohibits employment discrimination based on race - color - religion - sex - and national origin. This prohibits discrimination in hiring - firing - recruiting - and compensation. Prohibit sexual harassment or requesti






49. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






50. It represents notice that a lawsuit has been filed against the defendant