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






2. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






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. A beneficiary's rights vest when she (a) manifests her assent to the contract - (b) brings suit to enforce the contract - or (c) materially changes her position justifiable reliance on the contract. Once the beneficiary's rights have vested - the con

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5. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.

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6. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






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






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






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






10. The person to whom the right is assigned






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






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






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






14. It focuses on the clean up of abandoned or historical hazardous waste sites - for which it established a 'Superfund'. The EPA (Environmental Protection Agency) identifies particularly egregious sites and places them on a National Priorities List. The






15. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).






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






17. When the debtor voluntarily initiates the bankruptcy proceedings






18. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






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






20. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.






21. 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






22. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






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






24. 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






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






26. 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






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






28. Regulates trusts and monopolies






29. The party seeking to appeal the previous court's decision






30. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.

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31. They represent losses that result from other transactions that are dependent upon the breached contract






32. A condition that must occur before a duty to perform arises






33. 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






34. 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






35. 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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36. Claims that the defendant has against the plaintiff






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






38. The person being sued






39. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'






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






41. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.






42. Discrimination based on race or sex






43. 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.'






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






45. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






46. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)






47. 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).






48. Misrepresentation that was made with intent






49. It is an action to avoid unjust enrichment.






50. 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