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






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


3. 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






4. 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






5. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






6. The promisor's failure to perform in accordance with the terms of the contract






7. They represent losses that result from other transactions that are dependent upon the breached contract






8. A trivial defect in performance (the opposite of material breach).






9. A condition that cuts off a pre-existing duty






10. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






11. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.






12. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.






13. It is an action to avoid unjust enrichment.






14. Treaties between two nations addressing investment concerns






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.






16. The exchange of promises or an exchange of a promise for a performance.






17. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






18. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






19. 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.






20. When both parties agree to rescind the contract






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






22. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.


23. The first court to consider an action






24. A distinct mark or symbol that identifies a business and its products






25. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






26. When the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.






27. When the debtor voluntarily initiates the bankruptcy proceedings






28. 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






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






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






31. 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






32. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).






33. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






34. 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






35. The property that is the subject of a security interest






36. 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.






37. 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.






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






39. 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.






40. Actual performance of an obligation






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






42. When a party unlawfully indicate that he will not perform when the performance is due.






43. A motion claiming that the plaintiff has not established enough evidence to prove her case. The motion can be made by the defendant when the plaintiff has finished completed presenting the case.






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






45. If the employee can prove that the employer created an implied contract to fire the employee only for the cause - such a contract will prevent firing an employee from any reason.






46. When a product is incorrectly manufactured that is unreasonably dangerous to consumers. To prove that 'unreasonably dangerous' - the show that an ordinary consumer would see it that way (consumer expectation test).






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


48. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.






49. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)






50. Ethical behavior in terms of its consequences ('the end justifies the means')