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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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.
'Mailbox' rule
Res judicata
Pension Benefit Guaranty Corporation (PBGC)
Donee beneficiary
2. The creditor's right to take possession of the property is called foreclosure
Unilateral mistake
Section 10(b) and Rule 10b-5 of the Exchange Act
Rules of construction
Foreclosure
3. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.
Bargained-for-exchange
Pre-existing duty
Changed circumstances that allow a party to be excused from performance under the contract
Short swing profits
4. Rules of ethics that govern the practice of law and the conduct of lawyers
Promisor's rights (in relation to the beneficiary)
Legal ethics
Federal Information Act
Securities and Exchange Commission
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
Attachment
Rule 506 of Regulation D of the Securities Act
Token consideration
Termination of an invitation to make an offer
6. Prohibit mergers and acquisitions that may reduce competition or create a monopoly
Gramm-Leach-Bliley Act
Token consideration
Substantial performance
Clayton Act
7. Offering made to purchase all or a portion of the shares of a specific company
Breach
Tender offers
Bilateral treaties
When an assignment becomes void
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).
Contracts that prohibit assignment
Pension Benefit Guaranty Corporation (PBGC)
Affirm or disaffirm
Perfected
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.
Petit jury
Pretexting
Charitable contributions
Express contract
10. Not discriminating against foreign product - thereby treating all products within their border equally
National Treatment
Effect of delegation
Fair Credit Reporting Act
Remediation
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
Civil Law
Indictment
The Family and Medical Leave Act
Employment law
12. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.
Bureau of Customs and Border Protection
Trademark
Corporate social responsibility
Unjust enrichment
13. The person to extends credit or a loan - and hence the person to whom a debt is owed
Gratuitous assignment
Implied contract
Uniform Laws
Creditor
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
Contracts that prohibit assignment
Federal question jurisdiction
Substantive unconscionability
National Ambient Air Quality Standards
15. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.
Involuntary proceeding
Hung jury
Pretexting
Donee beneficiary
16. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.
Manufacturing defect
Fair Credit Reporting Act
Total breach
Lien
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.
Consequential damages
Accredited investor
Pre-existing duty
Delegation
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
Who is liable
Equal protection
Undue influence
Rule 12b (6) motion
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
10-K
Standing
Mistake
Expertised portion
20. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable
Enabling acts
'meeting of the minds'
Federal Communications Commission
Charitable contributions
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
Chapter 7 of the Code
Discharge of contract
'meeting of the minds'
Equal Pay Act (EPA)
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
The Statute of Frauds
Foreclosure
Horizontal agreement
Subject matter jurisdiction
23. A condition that must occur before a duty to perform arises
Restitution and rescission
Implied contract
Condition precedent
Demand assurance
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.
Negative causation
Motion of directed verdict or of dismissal
Short swing profits
Bargained-for-exchange
25. Regulates the handling of the pesticides being exported from and imported into the U.S.
Section 5 of the Securities Act
Injunction
Federal Environmental Pesticide Control Act
'Quid pro quo'
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
Counteroffer
A motion of summary judgement
Remediation
Administrative Procedure Act
27. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).
Standing
Equal Pay Act (EPA)
Executed exchange
National Labor Relations Board (NLRB)
28. The obligation to establish his claims first
Burden of proof
Unemployment compensation laws
Environmental Protection Agency
Legal ethics
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
Condition concurrent
Scienter
Employment law
Contracts that prohibit assignment
30. An interest in property or collateral granted in order to ensure payment of a debt or obligation
Export Administration Act (EAA)
Employee Retirement Income Security Act (ERISA)
Parol Evidence Rule
Security interest
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 -
Any statutory seller
Personal jurisdiction
Chapter 13 of the Code
Penalty
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.
Assignee
A motion of summary judgement
Rule 144 of the Securities Act
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
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
Horizontal agreement
Statute of limitations
Informed consent
Quasi-contract
34. When the jury retires to a separate room to decide the outcome of the case.
Deliberation
Environmental Protection Agency
Unjust enrichment
Sham consideration
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
Pretexting
Statutory Seller
Fraud
Securities Act
36. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.
Consequentialism
Penalty
Joint obligation
Social Security Act
37. The obligee who officially assigned over his rights
Ordinances
Price fixing
Assignor
Obligor's 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.
Other constituency statutes
Companies that are subject to the exchange act (Reporting companies)
Private placement
Rule of reason
39. A condition that occurs at the same time as performance
Collective bargaining
Condition concurrent
Substitutes of consideration
Malpractice
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
Resource Conservation and Recovery Act
Lien
Design defect
Employment law
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.
Federal question jurisdiction
Appellee or respondent
Securities
The Family and Medical Leave Act
42. Regulates air and water pollution as well as address problems associated with certain toxic substances
Environmental Protection Agency
Effect of delegation
10-K
Breach
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
Remediation
National Labor Relations Board (NLRB)
Substitutes of consideration
Unilateral mistake
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.
Clayton Act
Sham consideration
Concurrent conflict of interests
Toxic Substances Control Act
45. The person being sued
Defendant
Group boycotts
Any statutory seller
Automatic stay
46. Inadequate warning of danger - which can be construed as a design defect
'de nuvo'
Inadequate warning defect`
Chapter 13 of the Code
Stare decisis
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
Precedent
Chapter 7 of the Code
Negative causation
Occupational Safety and Health Administration (OSHA)
48. An independent federal agency established to promote consumer protection and reduce unfair competition among business.
Federal Trade Commission (FTC)
Securities Exchange Act of 1934
Complete or total integration
Precedent
49. The creditor's security interest in real property
Statute of limitations
Discovery
Mortgage
Deontological
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
Civil liability
Resource Conservation and Recovery Act
Adhesion
Specialized federal courts