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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. Laws created by city councils or county boards - aimed at local matters






2. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other






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






4. This involves filing a registration statement with the SEC - which contains information about the securities to be registered as well as the company that is issuing the security. Included within the registration statement is a prospectus






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






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






7. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.






8. The primary doctrine used to substitute for consideration is promissory estoppel or detrimental reliance. Under that doctrine - a promise will be enforced without consideration under the following conditions: (a) The promisor should reasonably expect






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






10. Institutional investors - people with over a million dollars in net worth - venture capital firms - trusts with assets over $5 million - directors and executive officers of the issuing company - and other specified investors.






11. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.






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






13. They represent the amount of money a party has spent in justifiable reliance on a contract.






14. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






15. 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






16. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






17. When the jury retires to a separate room to decide the outcome of the case.






18. A quarterly report required by the Exchange Act






19. Both a rejection and termination of the original offer.






20. The person being sued






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






22. A current report required by the Exchange Act






23. A situation where one person unfairly benefits from a transaction






24. An intent to deceive or defraud






25. The proceeding for a supervised reorganization of the debtor's business. The debtor must present a plan of reorganization to the bankruptcy court. After 120 days - creditors have the right to present competing plans. The court makes the final determi






26. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






27. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






28. 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

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29. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

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






31. 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






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






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






34. Prohibit discrimination based on pregnancy or childbirth






35. This takes place when a crime has been committed against the state. In this case - there is a prosecution - which writes an indictment and sends it to the grand jury. If the grand jury decides that there is sufficient evidence - it will return the pr






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






37. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






38. A misrepresentation made with knowledge of its inaccuracy






39. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






40. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired






41. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time

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42. Agreements between competitors to set particular prices for their products (a horizontal agreement)






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






44. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






45. 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.






46. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






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






48. 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






49. 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.






50. A body of rules and system based on the decisions that judges have made in the past about such cases. It originated in England. In the late 1700s - Sir William Blackstone published 'Commentaries on the Law of England' - which provides the most compre