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






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






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






4. Speech regarding commercial or economic activities. Congress has a broad ability to regulate commercial speech. (However - government regulations based on content are subject to strict scrutiny - meaning that they will be sustained only if they are n






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






6. 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






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






8. 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)






9. 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






10. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.






11. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






12. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






13. A company subject to the Exchange Act






14. Not discriminating against foreign product - thereby treating all products within their border equally






15. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






16. 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






17. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of






18. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






19. 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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20. Automatic violations of the Sherman Act






21. Torts and contracts... represents law that regulates the relationships between parties.






22. A group of between 16 and 23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime. A grand jury is required in the 5th Amendment for all criminal cases. The grand jury has the power to subpoena witnesses and doc






23. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou






24. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






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






26. Prevents discrimination against employees who are 40years old or more






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

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29. Previous decisions made by decisions - by which the current judges must abide by.






30. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






31. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for






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

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33. This is when the appellate court send the case back to the lower court for a new trial.






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






35. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.






36. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






37. The agreement to create a security interest






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






39. 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.






40. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).






41. An agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money. In the event of a default - the security interest allows the creditor to take possession of the property/asset in order to






42. 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






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






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






45. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






46. The obligation to establish his claims first






47. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.






48. 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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49. An intent to deceive or defraud






50. 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