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






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






3. Laws created by city councils or county boards - aimed at local matters






4. An intent to deceive or defraud






5. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






6. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.






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






8. When the creditor initiates the proceedings.






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






10. When there is no bargained-for exchange - because there is no exchange.






11. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






12. 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.






13. 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






14. The creditor's right to take possession of the property is called foreclosure






15. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou






16. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend






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






18. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






19. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance


20. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time


21. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






22. Punitive damage - non-economic damages - and attorneys' fees






23. The obligor does not need to provide consent - but does need to be given notice.






24. Offering made to purchase all or a portion of the shares of a specific company






25. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d






26. 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.


27. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






28. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






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






30. An exemption for transactions involving offerings to employees.






31. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






32. Constitutes conduct that improper or unethical. A tort action of negligence against lawyers for failing to satisfy their professional duty of care owed to their clients.






33. 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






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






35. Treaties entered into between two nations






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






37. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.


38. 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






39. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover






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






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






42. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize






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






44. Seeks to promote market economics and democratic governments






45. Treaties between two nations addressing investment concerns






46. It regulates chemical substances






47. 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






48. 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






49. 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.'






50. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other