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CLEP Introductory Business Law

Subjects : clep, law, business-law
  • Answer 50 questions in 15 minutes.
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  • 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 obligation to establish his claims first

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

3. 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

4. Prohibit discrimination based on pregnancy or childbirth

5. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)

6. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in

7. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement

8. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.

9. Punitive damage - non-economic damages - and attorneys' fees

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

11. The Constitution makes treaties the 'supreme law of the land'

12. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e

13. The person who is bringing the suit

14. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices

15. 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 -

16. The creditor's security interest in real property

17. Treaties between two nations addressing investment concerns

18. This sets standards for federal agency rule making as well as standards for hearings conducted by such agencies. A court appeal is not allowed until all administrative remedies have been exhausted. Courts do not overturn agency actions unless they ar

19. An annual report required by the Exchange Act

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

21. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.

22. 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

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

24. The power of the Supreme Court to review federal or state law as constitutional or not. It is the result of the 'Marbury v Madison' 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. The promisor's failure to perform in accordance with the terms of the contract

27. 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

28. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'

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

30. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.

31. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.

32. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible

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

34. 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

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

36. A distinct mark or symbol that identifies a business and its products

37. 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.

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

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

40. An intent to deceive or defraud

41. 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.

42. 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).

43. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable

44. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.

45. Twelve members of jury that hear the evidence at the trial court. The Judge rules on the evidence and guides the jury on questions of law and proper rules of procedure.

46. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable

47. 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

48. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.

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

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