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






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






3. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.






4. Rules of ethics that govern the practice of law and the conduct of lawyers






5. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






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






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






8. 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).






9. Twelve members of jury that hear the evidence at the trial court. The Judge rules on the evidence and guides the jury on questions of law and proper rules of procedure.






10. Not discriminating against foreign product - thereby treating all products within their border equally






11. 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






12. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






13. The person to extends credit or a loan - and hence the person to whom a debt is owed






14. 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






15. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.






16. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.






17. Institutional investors - people with over a million dollars in net worth - venture capital firms - trusts with assets over $5 million - directors and executive officers of the issuing company - and other specified investors.






18. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p






19. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable






20. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable






21. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






22. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd






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






24. 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.






25. Regulates the handling of the pesticides being exported from and imported into the U.S.






26. This sets standards for federal agency rule making as well as standards for hearings conducted by such agencies. A court appeal is not allowed until all administrative remedies have been exhausted. Courts do not overturn agency actions unless they ar






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






28. The obligation to establish his claims first






29. 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






30. An interest in property or collateral granted in order to ensure payment of a debt or obligation






31. Liability extends to ___________ - without the plaintiff needing to proof of reliance or causation. The seller can avoid liability by showing negative causation - the plaintiff knew that the statements in the prospectus at the time of her purchase -






32. Establishes certain rules for the proper resale - including the requirement that such securities must be held for at least one year - and sold through a broker in a transaction that involves a limited percentage of securities.






33. It is the period in which a person may bring her claim. A contract becomes unenforceable after the statute of limitations has expired. A new contract must be created






34. When the jury retires to a separate room to decide the outcome of the case.






35. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section






36. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






37. The obligee who officially assigned over his rights






38. 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.






39. A condition that occurs at the same time as performance






40. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible






41. 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.






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






43. 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






44. 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.






45. The person being sued






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






47. 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






48. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






49. The creditor's security interest in real property






50. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable