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






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






3. Manages the nation's social security system






4. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.






5. 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.).






6. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor






7. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.






8. Place of permanent residence






9. When both parties agree to rescind the contract






10. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






11. 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.






12. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)






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






14. A court reference to the notion that there must be mutual agreement about the exchange to be performed

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15. A contract that is made where two promises are outstanding.






16. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.

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17. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






18. A perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio






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






20. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres

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21. 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.






22. The obligation to establish his claims first






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






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






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






26. Oversees the purchase and sale of securities






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






28. The exchange of promises or an exchange of a promise for a performance.






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






30. 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)






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






32. 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






33. An exemption for transactions involving offerings to employees.






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






35. All total breaches are material breaches. However - a total breach have factors including whether there is a likelihood of a cure - further delay will prevent the promisee from making alternative arrangements - or prompt performance is a critical ele






36. Negative causation - due diligence defense - ...






37. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






38. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section






39. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






40. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t






41. 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






42. The obligee who officially assigned over his rights






43. Administers federal labor laws






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






45. 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






46. 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.






47. 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






48. Ethical behavior in terms of its consequences ('the end justifies the means')






49. 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

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