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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. 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

2. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.

3. Prohibit discrimination based on pregnancy or childbirth

4. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental

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

6. Negative causation - due diligence defense - ...

7. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou

8. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste

9. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement

10. Manages the nation's social security system

11. It regulates chemical substances

12. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th

13. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance

14. 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.

15. The standards designed to reduce the presence of pollutants int eh air to levels that are consistent with promoting good health and preserving the environment. States must ensure that they are in compliance with such standards

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

17. 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.

18. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable

19. An annual report required by the Exchange Act

20. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do

21. 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

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

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

24. 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

25. A perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio

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

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

28. When the debtor voluntarily initiates the bankruptcy proceedings

29. Place of permanent residence

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

31. Enables debtors to create a repayment plan for certain debts - while still retaining their assets.

32. An exemption for certain small offerings

33. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p

34. 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

35. 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

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

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

38. Regulates the handling of the pesticides being exported from and imported into the U.S.

39. Revocability relates to situations when an assignment can be taken away from the assignee. When an assignment is supported by consideration - it irrevocable - and vice-versa. If an assignment is irrevocable - then the assignor does not have the right

40. 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.

41. A misrepresentation made with knowledge of its inaccuracy

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

43. 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.

44. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is

45. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer

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

47. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

48. A company subject to the Exchange Act

49. Misrepresentation that was made with intent

50. 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