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






2. When both parties are mistaken - the mistake concerns a basic assumption on which the contract was made that has material impact on performance - and the party seeking to avoid performance has not assumed the risk of the mistake. Contract is voidable






3. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize






4. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions






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






6. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.






7. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






8. Duties that involve some personal service or skill or that would materially change the obligor's expectancy under the contract may not be delegated without the obligee's consent. When a contract prohibit assignment - then it also cannot be delegated.






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






10. 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.






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

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






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






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






17. The Constitution makes treaties the 'supreme law of the land'






18. In some contracts - the parties will stipulate the amount of damages to be awarded upon a breach. The courts will award such amount if the damages were difficult to determine at the time the contract was written - the stipulated amount is a reason fo






19. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






20. Regulates trusts and monopolies






21. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.

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22. 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.






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






24. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'






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






26. 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






27. A trust formed to dominate an industry






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






29. The first court to consider an action






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






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






32. 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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33. 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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34. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable






35. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.






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






37. 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






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






39. 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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40. A condition that must occur before a duty to perform arises






41. 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.






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






43. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts






44. A supervening stature makes a contract illegal - and thereby makes performance impossible






45. All total breaches are material breaches. However - a total breach have factors including whether there is a likelihood of a cure - further delay will prevent the promisee from making alternative arrangements - or prompt performance is a critical ele






46. 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






47. 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






48. 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.






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






50. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof