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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 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






2. The belief that the corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders. However - laws do not impose this obligation/responsibility






3. It represents notice that a lawsuit has been filed against the defendant






4. Regulates the handling of the pesticides being exported from and imported into the U.S.






5. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






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






7. 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






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






9. 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






10. When the debtor voluntarily initiates the bankruptcy proceedings






11. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.






12. 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.






13. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for






14. 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






15. This takes place when a crime has been committed against the state. In this case - there is a prosecution - which writes an indictment and sends it to the grand jury. If the grand jury decides that there is sufficient evidence - it will return the pr






16. Prohibits institutions from discrimination related to credit applications






17. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






18. When the plaintiff's damages were caused by something other than the misrepresentation or omission






19. The agreement to create a security interest






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






21. 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






22. 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






23. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






24. It represents a request for the court to take some action. A motion can be filed by a defendant.






25. 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.






26. It is a promise stated in words - either oral or written.






27. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)






28. An undertaking or commitment to act or refrain from acting in a specified way in the future. There is a 'promisor' and the 'promisee' - and sometimes a 'beneficiary' (someone else who benefits - but is outside the promise)






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






30. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






31. Enables debtors to create a repayment plan for certain debts - while still retaining their assets.






32. Directors - certain officers - and owners






33. Regulates trusts and monopolies






34. 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






35. Regulates air and water pollution as well as address problems associated with certain toxic substances






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






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






38. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






39. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.






40. Oversees the purchase and sale of securities






41. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu






42. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






43. He can raise any defense against the assignee that she would have been able to raise against the assignor. This is the right to offset the assignee's claim - and thus the assignee cannot be held directly liable to the assignor for the improper action

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44. The promisor's failure to perform in accordance with the terms of the contract






45. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






46. Consideration means that there must be a bargained-for-exchange - and the promisee must incur some legal detriment. Consideration is necessary for a person seeking to enforce a contract. Courts generally do not evaluate the adequacy of the considerat






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






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






49. 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.






50. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).