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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. Regulates air and water pollution as well as address problems associated with certain toxic substances






2. 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.






3. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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






5. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






6. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.






7. When the jury retires to a separate room to decide the outcome of the case.






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






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






10. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.






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






12. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






13. 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






14. 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.






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






16. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






17. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -






18. 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






19. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).






20. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'






21. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






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






23. 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






24. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






25. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.






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






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






28. The obligee who officially assigned over his rights






29. The belief that the corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders. However - laws do not impose this obligation/responsibility






30. When the debtor voluntarily initiates the bankruptcy proceedings






31. The party seeking to appeal the previous court's decision






32. 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






33. He has the enforceable right against the obligor because he is considered the real party interest.

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34. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu






35. 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






36. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






37. Words or actions an individual may have intended - but did not communicate






38. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.






39. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.






40. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






41. 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.






42. Prohibits institutions from discrimination related to credit applications






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






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






45. 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.






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






47. 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






48. 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






49. Claims that the defendant has against the plaintiff






50. 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.).