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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. 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






2. A party's damage award will be reduced by any loss he did or could have avoided.






3. A court reference to the notion that there must be mutual agreement about the exchange to be performed

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4. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






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






6. 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.






7. The Constitution makes treaties the 'supreme law of the land'






8. Inadequate warning of danger - which can be construed as a design defect






9. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.

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10. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






11. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.






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






13. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






14. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im






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






16. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






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






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






19. 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






20. The primary doctrine used to substitute for consideration is promissory estoppel or detrimental reliance. Under that doctrine - a promise will be enforced without consideration under the following conditions: (a) The promisor should reasonably expect






21. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






22. An anti-discrimination law that prohibits employment discrimination based on race - color - religion - sex - and national origin. This prohibits discrimination in hiring - firing - recruiting - and compensation. Prohibit sexual harassment or requesti






23. 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






24. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






25. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.






26. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






27. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






28. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






29. The obligation to establish his claims first






30. It represents a request for the court to take some action. A motion can be filed by a defendant.






31. An agreement of when the promisee agree to accept different performance from the original promisor in exchange for a release of the original agreement. However - the original obligation is not discharged until there has been satisfaction.






32. 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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33. Treaties entered into between two nations






34. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.






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






36. 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.






37. 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






38. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)






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






40. 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






41. 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






42. 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.






43. Safeguards consumer's personal information by ensuring that financial institutions that have access to private financial information have protection plans for that information - ensures that consumers receive better disclosure regarding a financial i






44. A company becomes a 'public company' when it issues its securities pursuant to this registration process.






45. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t






46. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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47. An exemption for offerings that occur primarily within one state.






48. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions






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






50. It is a promise stated in words - either oral or written.







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