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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. A supervening stature makes a contract illegal - and thereby makes performance impossible






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






3. 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.






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






5. They represent losses that result from other transactions that are dependent upon the breached contract






6. It regulates chemical substances






7. Laws that provides employees with compensation for a set period of time when they become unemployed through no fault of their own. It is a combined federal and state insurance program in which they both contribute money - along with the employers. Ea






8. Obtaining consumer's private financial information under false pretenses






9. 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.






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






11. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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






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






14. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






15. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






16. 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






17. Establishes that federal and state courts do not have jurisdiction over cases against a foreign nation. Immunity ends if the commercial activity occurred in the US - actions in the US based on commercial activities abroad - or commercial activities a






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






19. 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






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






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






22. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






23. 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






24. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






25. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






26. 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).






27. Punitive damage - non-economic damages - and attorneys' fees






28. A trivial defect in performance (the opposite of material breach).






29. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






30. Claims that the defendant has against the plaintiff






31. 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






32. 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






33. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.






34. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






35. It represents the defendant's request for a new proceeding to determine if he is being unlawfully deprived of his liberty. It is limited to people in custody. It can only be used after all other methods have been exhausted.






36. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






37. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

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38. 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






39. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






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






41. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






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






43. A quarterly report required by the Exchange Act






44. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






45. Manages the nation's social security system






46. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






47. Actual performance of an obligation






48. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






49. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






50. When both parties are mistaken - the mistake concerns a basic assumption on which the contract was made that has material impact on performance - and the party seeking to avoid performance has not assumed the risk of the mistake. Contract is voidable