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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. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






2. 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.






3. Oversees implementation of this benefit program of the Social Security Act






4. The party that won in the previous court trial - but the other party is appealing the decision.






5. A pre-trial motion when the pleadings are vague or ambiguous.






6. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)






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

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






9. A company subject to the Exchange Act






10. 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






11. 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.






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

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14. A promise that is inferred from a person's conduct or the circumstances of the transaction






15. 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






16. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.

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17. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.






18. The obligation to establish his claims first






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






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






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






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






23. 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'






24. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o






25. A condition that occurs at the same time as performance






26. The person who is bringing the suit






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






28. The power of the Supreme Court to review federal or state law as constitutional or not. It is the result of the 'Marbury v Madison' case.






29. Prohibit discrimination based on pregnancy or childbirth






30. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






31. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t






32. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)






33. It is the opportunity for each party to present their arguments to the appellate court. However - it is not always allowed.






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






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






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






37. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con






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






39. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.






40. 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






41. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






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






43. 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






44. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section






45. Discrimination based on race or sex






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






47. When a control makes a profit purchasing and selling her shares within a six-month period






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






49. 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.






50. The creditor's security interest in real property