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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. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






2. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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3. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions






4. Seeks to promote market economics and democratic governments






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






6. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






7. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.

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






9. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.

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10. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






11. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






12. 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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13. It represents a request for the court to take some action. A motion can be filed by a defendant.






14. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.






15. 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






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






17. A quarterly report required by the Exchange Act






18. Oversees implementation of this benefit program of the Social Security Act






19. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years






20. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.






21. 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.






22. 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






23. Legally recognized injury






24. 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






25. Safeguards consumer's personal information by ensuring that financial institutions that have access to private financial information have protection plans for that information - ensures that consumers receive better disclosure regarding a financial i






26. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






27. When the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.






28. When the creditor initiates the proceedings.






29. 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.






30. A company subject to the Exchange Act






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






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






33. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan






34. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






35. An exemption for securities sold outside of the U.S.






36. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






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






40. A condition that occurs at the same time as performance






41. This regulate the discharge of pollutants into the water. It authorizes the EPA (Environmental Protection Agency) to determine the permissible levels of contaminants in the water to ensure a safe water supply - and to set standards aimed at meeting t






42. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t






43. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach






44. 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






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






46. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.






47. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






48. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






49. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






50. The obligation to establish his claims first