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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 power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting






2. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -






3. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






4. A misrepresentation made with knowledge of its inaccuracy






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






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






7. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired






8. The person to whom the right is assigned






9. 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.


10. 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






11. 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).






12. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for






13. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






14. The documents that parties file in connection with their lawsuit






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






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. Consideration means that there must be a bargained-for-exchange - and the promisee must incur some legal detriment. Consideration is necessary for a person seeking to enforce a contract. Courts generally do not evaluate the adequacy of the considerat






18. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor






19. 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.'






20. It represents notice that a lawsuit has been filed against the defendant






21. It is a document containing information that must be delivered to investors prior to their securities' purchase. It is designed to contain all the information that an investor needs to evaluate the security and risk associated with purchasing the sec






22. 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.'






23. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






24. 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.






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






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






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






28. Oversees implementation of this benefit program of the Social Security Act






29. Agreements between competitors to set particular prices for their products (a horizontal agreement)






30. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






31. The right to hold a security interest on a debtor's property.






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






33. Previous decisions made by decisions - by which the current judges must abide by.






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






35. 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.






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






37. 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






38. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres


39. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






40. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






41. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.


42. Prohibits institutions from discrimination related to credit applications






43. 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






44. 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






45. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






46. Treaties entered into between two nations






47. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






48. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach






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






50. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading