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






2. 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)






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






5. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






6. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed






7. 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.






8. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






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






10. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.






11. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






12. Speech regarding commercial or economic activities. Congress has a broad ability to regulate commercial speech. (However - government regulations based on content are subject to strict scrutiny - meaning that they will be sustained only if they are n






13. Judges that belong to an administrative agency - to which claims regarding administrative agency rules are brought to.






14. Regulates trusts and monopolies






15. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)






16. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






17. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.






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






19. Claims that the defendant has against the plaintiff






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






21. Treaties between two nations addressing investment concerns






22. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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






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






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






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






28. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion






29. A group of between 16 and 23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime. A grand jury is required in the 5th Amendment for all criminal cases. The grand jury has the power to subpoena witnesses and doc






30. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






31. 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.






32. A trust formed to dominate an industry






33. 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






34. A person who is not an intended beneficiary






35. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices






36. Laws that states have passed that aim at regulating securities transactions within their states.

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37. 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).






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






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






40. Words or actions an individual may have intended - but did not communicate






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






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






43. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in

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44. An assertion that is not in accord with the facts. A contract becomes voidable when it is shown that a misrepresentation was made - it was material - and the party seeking avoidance reasonably relied on it.






45. Ensures fair disclosure of credit terms - thereby protecting consumers from inaccurate and unfair billing and credit card practices






46. It regulates chemical substances






47. Prohibits institutions from discrimination related to credit applications






48. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.






49. The difference between the value of the property as substantially complete and the value of the property upon full performance






50. The US appeals or appelate court. If a party appeals the district court's decision - it can be brought to the federal court of appeals or the federal court of appeals. It has appellate jurisdiction.