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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. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)






2. 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






3. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






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






5. A quarterly report required by the Exchange Act






6. 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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7. 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






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






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






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






11. A contract that is made where two promises are outstanding.






12. 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.






13. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






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






15. It is a promise stated in words - either oral or written.






16. The creditor's security interest in real property






17. The obligation to establish his claims first






18. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






19. A company subject to the Exchange Act






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






21. Regulates air and water pollution as well as address problems associated with certain toxic substances






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






23. The first court to consider an action






24. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






25. Automatic violations of the Sherman Act






26. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






27. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

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






29. 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)






30. 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.'






31. 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.






32. 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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33. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.






34. 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 -






35. A trivial defect in performance (the opposite of material breach).






36. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t






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






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






39. 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.






40. Judges that belong to an administrative agency - to which claims regarding administrative agency rules are brought to.






41. 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.






42. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.






43. When both parties agree to rescind the contract






44. Contracts that are formed for the intended benefit of some third party.






45. 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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46. A current report required by the Exchange Act






47. Place of permanent residence






48. All total breaches are material breaches. However - a total breach have factors including whether there is a likelihood of a cure - further delay will prevent the promisee from making alternative arrangements - or prompt performance is a critical ele






49. The standards designed to reduce the presence of pollutants int eh air to levels that are consistent with promoting good health and preserving the environment. States must ensure that they are in compliance with such standards






50. The written set of charges against the defendant - which is presented to a grand jury.