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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. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






2. 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 -






3. Manages the nation's social security system






4. Prohibits differences in wages based on the gender of men and women who perform substantially same work.






5. The EPA was established to oversee pollution control efforts. It is charged with working with federal - state - and local official to protect the national environment and provide guidance towards effective policies - and sets standards for environmen






6. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






7. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






8. Both a rejection and termination of the original offer.






9. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






10. 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






11. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.






12. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






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






14. The person to whom the right is assigned






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






17. Legally recognized injury






18. 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






19. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)






20. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.






21. Seeks to promote market economics and democratic governments






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






23. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con






24. A party's damage award will be reduced by any loss he did or could have avoided.






25. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.






26. A person who is not an intended beneficiary






27. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage






28. 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.






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






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






31. Securities issued by the federal government - state governments - or any of their subdivision; securities issued by a charitable organization; issued by banks or saving or loan institutions - issued by a receiver or trustee in bankruptcy;. issued wit






32. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe






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






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






35. 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






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






37. Employers make payments to retired employees based on the length of their employment and the wages they received.






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






39. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






40. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e






41. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.






42. Oversees the purchase and sale of securities






43. A creditor that does not have a security interest in any of the debtor's property or assets.






44. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.






45. In an effort to create harmony between state laws - a group of experts create a set of laws which each state chooses to follow in whole or in part. (Ex. Uniform Commercial Code)






46. (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)






47. 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.






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






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






50. The person being sued