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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. Actual performance of an obligation






2. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.






3. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'






4. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.






5. 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






6. Prohibits institutions from discrimination related to credit applications






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






8. 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)






9. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration






10. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






11. 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.






12. 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






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






14. 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






15. Legally recognized injury






16. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior






17. The promisor can raise any defense against the beneficiary that he would have been able to raise against the promisee. The promisor cannot raise a defense against the beneficiary and the promisee.

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






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






21. The person who assigns her rights






22. When the creditor initiates the proceedings.






23. 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.






24. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






25. Oversees the purchase and sale of securities






26. If the promisor substantially performs under teh contract






27. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






28. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






29. 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






30. When the debtor voluntarily initiates the bankruptcy proceedings






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






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






33. Misrepresentation that was made with intent






34. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.






35. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






36. A situation where one person unfairly benefits from a transaction






37. One of the primary federal federal statutes






38. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches

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39. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






40. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






41. 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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42. Obtaining consumer's private financial information under false pretenses






43. The party that won in the previous court trial - but the other party is appealing the decision.






44. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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45. 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)






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






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

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48. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






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






50. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years