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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. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






2. When there is no bargained-for exchange - because there is no exchange.






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






4. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -






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






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






7. An intent to deceive or defraud






8. Prohibits institutions from discrimination related to credit applications






9. Place of permanent residence






10. Misrepresentation that was made with intent






11. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






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






13. 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.






14. A company subject to the Exchange Act






15. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d






16. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.






17. 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.






18. 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






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






20. Actual performance of an obligation






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






22. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe






23. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






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






25. 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






26. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).






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






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






29. 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.






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






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






32. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.






33. Consent after the lawyer has adequately informed the client about the conflict and not only has explained to her the material risk associated with the conflict but also has made available her reasonable alternatives to the proposed conflict






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






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






36. 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.






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

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38. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






39. A company becomes a 'public company' when it issues its securities pursuant to this registration process.






40. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts






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






42. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.






43. Establishes that federal and state courts do not have jurisdiction over cases against a foreign nation. Immunity ends if the commercial activity occurred in the US - actions in the US based on commercial activities abroad - or commercial activities a






44. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






45. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






46. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage






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






48. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






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






50. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.