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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. 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






2. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.






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






4. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






5. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).






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






7. 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






8. After taking the case to the federal district court - the party has the right to appeal to the federal circuit court of appeals. there are twelve federal appeals courts that hear cases from several different district courts within a specific geograph






9. In some contracts - the parties will stipulate the amount of damages to be awarded upon a breach. The courts will award such amount if the damages were difficult to determine at the time the contract was written - the stipulated amount is a reason fo






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






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






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






13. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.






14. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






15. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






16. An exemption for securities sold outside of the U.S.






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






18. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).






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






20. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






21. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






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






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






24. Defenses that would prevent the plaintiff from holding the defendant liable






25. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.

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26. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






27. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






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






29. 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)






30. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






31. An intent to deceive or defraud






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






33. 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






34. 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






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






36. 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






37. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






38. 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.






39. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






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






41. Directors - certain officers - and owners






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






43. Actual performance of an obligation






44. 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






45. Enacted in 1969 to protect the environment from the actions of public or private actors. It declared a policy and promoted efforts to prevent or eliminate environmental damage. It also ensures that public and private actors better understand the ecol






46. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.






47. Liability imposed on sellers and other for compensating people who have been injured as the result of defective product. Liability actions can be brought as tort or contract claims (breach of warranty).






48. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






49. 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






50. A promise that is inferred from a person's conduct or the circumstances of the transaction