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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. 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






2. 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.






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






4. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).






5. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws






6. This sets standards for federal agency rule making as well as standards for hearings conducted by such agencies. A court appeal is not allowed until all administrative remedies have been exhausted. Courts do not overturn agency actions unless they ar






7. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo






8. Laws that states have passed that aim at regulating securities transactions within their states.

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9. Seeks to promote market economics and democratic governments






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






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






12. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






13. 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






14. Agreements between competitors to set particular prices for their products (a horizontal agreement)






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






16. It is an action to avoid unjust enrichment.






17. The written set of charges against the defendant - which is presented to a grand jury.






18. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






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






20. Treaties between two nations addressing investment concerns






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






22. Liability extends to ___________ - without the plaintiff needing to proof of reliance or causation. The seller can avoid liability by showing negative causation - the plaintiff knew that the statements in the prospectus at the time of her purchase -






23. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.






24. 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






25. Negative causation - due diligence defense - ...






26. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






27. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






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






29. Automatic violations of the Sherman Act






30. 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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31. 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






32. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.






33. The person who assigns her rights






34. 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






35. The first court to consider an action






36. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






37. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t






38. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






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






40. Prohibits differences in wages based on the gender of men and women who perform substantially same work.






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






42. It represents notice that a lawsuit has been filed against the defendant






43. 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.






44. 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






45. Both a rejection and termination of the original offer.






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






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






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






49. A quarterly report required by the Exchange Act






50. 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.

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