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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. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.






2. A party's damage award will be reduced by any loss he did or could have avoided.






3. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.






4. Potential responsibility for payment of damages or other court - ordered enforcement as a result of a ruling in a lawsuit. Civil liability is not the same as criminal liability - which means 'open to punishment for a crime.'






5. Liability imposed on sellers and other for compensating people who have been injured as the result of defective product. Liability actions can be brought as tort or contract claims (breach of warranty).






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






7. A trust formed to dominate an industry






8. Establishes certain rules for the proper resale - including the requirement that such securities must be held for at least one year - and sold through a broker in a transaction that involves a limited percentage of securities.






9. A company subject to the Exchange Act






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






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






12. Legally recognized injury






13. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -






14. An annual report required by the Exchange Act






15. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s

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16. 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






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






18. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior






19. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






20. The documents that parties file in connection with their lawsuit






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






22. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






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






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






25. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws






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






27. 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






28. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres

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






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






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






32. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






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






34. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






35. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






36. One party made a mistake - the mistake concerns a basic assumption on which the contract was made that has a material impact on performance - the party seeking to avoid performance has not assumed the risk of the mistake - and equities favor avoidanc






37. 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.






38. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed






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






40. The first court to consider an action






41. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'






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






43. 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






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






45. Prohibits differences in wages based on the gender of men and women who perform substantially same work.






46. Regulates air and water pollution as well as address problems associated with certain toxic substances






47. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)






48. 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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49. Claims that the defendant has against the plaintiff






50. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o