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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. Safeguards consumer's personal information by ensuring that financial institutions that have access to private financial information have protection plans for that information - ensures that consumers receive better disclosure regarding a financial i






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






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






4. 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.






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






6. 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






7. A misrepresentation made with knowledge of its inaccuracy






8. 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.






9. The person to extends credit or a loan - and hence the person to whom a debt is owed






10. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)






11. Contracts that are formed for the intended benefit of some third party.






12. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






13. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






14. 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


15. 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






16. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o






17. 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.






18. The standards designed to reduce the presence of pollutants int eh air to levels that are consistent with promoting good health and preserving the environment. States must ensure that they are in compliance with such standards






19. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.


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






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






22. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






23. Prohibit discrimination based on pregnancy or childbirth






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






25. If the promisor substantially performs under teh contract






26. An order from the court to perform the contract pursuant of its terms. This is only does when the damage remedy is inadequate and the equitable need for such performance outweighs the burden of supervision and harm to the defendant.






27. 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






28. 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.






29. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






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






31. 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.






32. 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






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






34. When the jury retires to a separate room to decide the outcome of the case.






35. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






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






37. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






38. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts






39. This involves filing a registration statement with the SEC - which contains information about the securities to be registered as well as the company that is issuing the security. Included within the registration statement is a prospectus






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






41. Seeks to promote market economics and democratic governments






42. 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






43. 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






44. 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






45. Constitutes conduct that improper or unethical. A tort action of negligence against lawyers for failing to satisfy their professional duty of care owed to their clients.






46. Agreements between buyers and sellers - price-related agreements are per se illegal. Such agreements require court scrutiny based on the rule of reason in order to be held illegal.






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






48. 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)






49. 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






50. Legally recognized injury