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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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. 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.
Consumer protection
Federal Insurance Contributions Act
Vertical agreements
Reliance
2. 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 -
Sham consideration
Rule 147 of the Securities Act
Process of assignment
Any statutory seller
3. Manages the nation's social security system
The Social Security Administration
Partial or trivial breach
Misstatement or omission
Writ of habeas corpus
4. Prohibits differences in wages based on the gender of men and women who perform substantially same work.
Res judicata
Equal Employment Opportunity Commission (EEOC)
Equal Pay Act (EPA)
'Mailbox' rule
5. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen
Environmental Protection Agency (EPA)
Condition precedent
Appellant
Suspect classification
6. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...
Promisor's rights (in relation to the beneficiary)
Appellate jurisdiction
National Treatment
General Agreement on Tariffs and Trades
7. 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.
Liquidated damages clause
Equal Pay Act (EPA)
Corporate social responsibility
Federal Insurance Contributions Act
8. Both a rejection and termination of the original offer.
Automatic stay
Securities and Exchange Commission
Counteroffer
Public company
9. 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
Effect of delegation
Commencing a lawsuit
Motion to strike
Group boycotts
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
Implied contract
Expertised portion
Securities Act
Counteroffer
11. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.
Misappropriation theory
Section 12(a)(2)
Collateral
Rule 506 of Regulation D of the Securities Act
12. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner
Federal Rules of Civil Procedures
Other constituency statutes
Assignment of rights
Federal Information Act
13. The Constitution makes treaties the 'supreme law of the land'
Consideration
Treaties authority
Unemployment compensation laws
Charitable contributions
14. The person to whom the right is assigned
Production quotas
Assignee
Unjust enrichment
'due process'
15. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.
Section 12(a)(2)
Expectation damages (also known as the 'benefit of the bargain')
Who is liable
Deliberation
16. A company becomes a 'public company' when it issues its securities pursuant to this registration process.
Petit jury
Total breach
Public company
Fair Debt Collection Act
17. Legally recognized injury
Model Rules of Professional Conduct
Injury-in-fact
Bilateral contract
Horizontal agreement
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
Adhesion
Chapter 7 of the Code
Revocation
Liquidated damages clause
19. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)
Exclusive dealing agreement
Group boycotts
Section 11 of the Securities Act
Jurisdiction
20. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.
Restatement (Second) of Contracts
Voluntarily proceeding
Organization for Economic Co-operation and Development (OECD)
Changed circumstances that allow a party to be excused from performance under the contract
21. Seeks to promote market economics and democratic governments
Public company
Mistake
Price fixing
Organization for Economic Co-operation and Development (OECD)
22. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)
Novation
Reliance
Exclusive distributor agreements
Inadequate warning defect`
23. 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
Export Administration Act (EAA)
Appellant
Revocability
Perfected
24. A party's damage award will be reduced by any loss he did or could have avoided.
Automatic stay
Section 12(a)(2)
Per se
Duty to mitigate
25. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.
Security interest
Clayton Act
Sham consideration
Bureau of Consumer Protection
26. A person who is not an intended beneficiary
Who is liable
Express contract
Consumer protection
Incidental beneficiary
27. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage
Any statutory seller
Hung jury
Rules of interpretation of a contract by a court
Novation
28. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.
Uniform Commercial Code ('UCC')
Clayton Act
Horizontal agreement
A motion of summary judgement
29. A fund with the goal of locating - investigating - and cleaning up abandoned or historical hazardous waste sites.
Appellate jurisdiction
Security interest
Equal protection
Superfund
30. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.
Complete or total integration
'clear and present'
Penalty
Judgment n.o.v.
31. Securities issued by the federal government - state governments - or any of their subdivision; securities issued by a charitable organization; issued by banks or saving or loan institutions - issued by a receiver or trustee in bankruptcy;. issued wit
Design defect
Exempt securities and transactions
Federal Trade Commission
Anticipatory repudiation
32. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe
Specialized federal courts
Fair Credit Reporting Act
Personal jurisdiction
Misrepresentation
33. Prohibit mergers and acquisitions that may reduce competition or create a monopoly
Termination of an invitation to make an offer
Clayton Act
Joint obligation
Unjust enrichment
34. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance
Materiality
Discharge of contract
Section 5 of the Securities Act
Diversity jurisdiction
35. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable
Section 7A of the Clayton Act
Substantive unconscionability
Exempt securities and transactions
Beneficiary's rights
36. The right to hold a security interest on a debtor's property.
Lien
Rules of interpretation of a contract by a court
Implied contract
Reliance
37. Employers make payments to retired employees based on the length of their employment and the wages they received.
Organization for Economic Co-operation and Development (OECD)
Demurrer
Intended beneficiary
Defined benefit plans
38. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations
Employment law
Trial court
Manufacturing defect
'Mirror image' rule
39. Only one of the party wants to rescind the contract - which requires legal grounds to do so.
'de nuvo'
Unilateral rescission
Executed exchange
Utilitarianism
40. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e
Who is liable
Content-neutral restrictions
Accord
Undue influence
41. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.
Short swing profits
Condition
Statute of limitations
Domicile
42. Oversees the purchase and sale of securities
Injunction
Securities and Exchange Commission
Promise
Exempt securities and transactions
43. A creditor that does not have a security interest in any of the debtor's property or assets.
Offer
Priority of secured transactions
Unsecured creditor
General Agreement on Tariffs and Trades
44. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.
Regulation S of the Securities Act
Illusory promise
Control persons
Plaintiff
45. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)
Informed consent
Organization for Economic Co-operation and Development (OECD)
Contract law
Uniform Laws
46. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)
Utilitarianism
Negative causation
'Ffour corners'
Title VII of the Civil Rights Act of 1964
47. 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.
Voluntarily proceeding
Quasi-suspect classification
Token consideration
Substitutes of consideration
48. Inadequate warning of danger - which can be construed as a design defect
Reliance damages
Implied terms
Inadequate warning defect`
Proxy
49. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices
Legal capacity
Pleadings
Fair Debt Collection Act
Mutual rescission
50. The person being sued
Federal district court
Domicile
Defendant
Mutual mistake