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






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






3. 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






4. 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






5. 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.






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






7. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






8. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.






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






10. 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.






11. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






12. 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.






13. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.






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






15. The creditor's security interest in real property






16. 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






17. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






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






19. The person who assigns her rights






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






21. 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 -






22. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






23. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






24. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

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






26. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






27. It is a promise stated in words - either oral or written.






28. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen






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






30. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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






32. A misrepresentation made with knowledge of its inaccuracy






33. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






34. 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






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






36. A trivial defect in performance (the opposite of material breach).






37. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






38. 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






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






40. They are the 'Federal Rules' that govern the procedures for filing a civil suit in federal cort. The states have adopted their own rules of procedures - but they generally are parallel to the federal rules.






41. An exemption for certain small offerings






42. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






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






44. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.






45. Agreements between buyers and sellers - price-related agreements are per se illegal. Such agreements require court scrutiny based on the rule of reason in order to be held illegal.






46. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p






47. Punitive damage - non-economic damages - and attorneys' fees






48. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.






49. Obtaining consumer's private financial information under false pretenses






50. 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.