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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 the creditor initiates the proceedings.






2. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






3. It is the period in which a person may bring her claim. A contract becomes unenforceable after the statute of limitations has expired. A new contract must be created






4. 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.






5. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.






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






7. Judges that belong to an administrative agency - to which claims regarding administrative agency rules are brought to.






8. 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






9. When there is no bargained-for exchange - because there is no exchange.






10. When the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.






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






12. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






13. Actual performance of an obligation






14. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






15. When the plaintiff's damages were caused by something other than the misrepresentation or omission






16. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






17. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






18. The first court to consider an action






19. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






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






21. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






22. It is a pre-trial motion to take out certain matters






23. 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






24. An exemption for certain small offerings






25. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of






26. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)






27. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.






28. 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.'






29. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






30. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






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






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






33. 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






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






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






36. 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.






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






38. Grants employees the right to bargain as a group and to establish - join - or assist labor organizations or unions. It requires the employers to bargain directly with the employees' representative. It establishes guidelines for the kinds of activitie






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






40. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices






41. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






42. 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.






43. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






44. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)






45. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.

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






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






49. An order from the court to perform the contract pursuant of its terms. This is only does when the damage remedy is inadequate and the equitable need for such performance outweighs the burden of supervision and harm to the defendant.






50. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






Can you answer 50 questions in 15 minutes?



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