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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. A promise that is inferred from a person's conduct or the circumstances of the transaction






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 -






3. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.






4. When the plaintiff's damages were caused by something other than the misrepresentation or omission






5. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






6. The property that is the subject of a security interest






7. 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






8. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






9. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






10. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions






11. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






12. An exemption for certain small offerings






13. The primary doctrine used to substitute for consideration is promissory estoppel or detrimental reliance. Under that doctrine - a promise will be enforced without consideration under the following conditions: (a) The promisor should reasonably expect






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






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






16. The principle used by courts when both parties are equally guilty of illegality - or when the party seeking restitution is more at fault than the other party

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17. 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






18. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






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






20. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






21. Laws that provides employees with compensation for a set period of time when they become unemployed through no fault of their own. It is a combined federal and state insurance program in which they both contribute money - along with the employers. Ea






22. 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






23. He can raise any defense against the assignee that she would have been able to raise against the assignor. This is the right to offset the assignee's claim - and thus the assignee cannot be held directly liable to the assignor for the improper action

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24. 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.






25. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.






26. 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.






27. It is the opportunity for each party to present their arguments to the appellate court. However - it is not always allowed.






28. 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.






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






30. Employers make payments to retired employees based on the length of their employment and the wages they received.






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






32. 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.






33. The person to extends credit or a loan - and hence the person to whom a debt is owed






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






35. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






36. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






37. 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






38. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.






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

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40. The person who is bringing the suit






41. 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.






42. 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






43. Oversees the purchase and sale of securities






44. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






45. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






46. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.






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

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48. Manages the nation's social security system






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






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