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CLEP Introductory Business Law

Subjects : clep, law, business-law
  • Answer 50 questions in 15 minutes.
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  • 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. They represent the amount of money a party has spent in justifiable reliance on a contract.

2. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.

3. 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.'

4. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.

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

6. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.

7. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).

8. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting

9. 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

10. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion

11. 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.

12. The promisor's failure to perform in accordance with the terms of the contract

13. Employers make payments to retired employees based on the length of their employment and the wages they received.

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

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

16. This is when an assignment is not supported by consideration and is revocable. It will only become irrevocable when (a) the obligor has performed her obligations to the assignee - (b) the assignor delivers the assignment in writing to the assignee -

17. 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

18. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.

19. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.

20. 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

21. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.

22. An exemption for transactions involving offerings to employees.

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

24. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.

25. Treaties entered into between two nations

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

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

28. 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.

29. 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

30. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan

31. When the creditor initiates the proceedings.

32. 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

33. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.

34. A distinct mark or symbol that identifies a business and its products

35. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.

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

37. 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

38. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)

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

40. 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

41. The person who assigns her rights

42. 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

43. 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.

44. 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

45. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).

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

47. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `

48. Inadequate warning of danger - which can be construed as a design defect

49. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the

50. A company becomes a 'public company' when it issues its securities pursuant to this registration process.