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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 beneficiary's rights vest when she (a) manifests her assent to the contract - (b) brings suit to enforce the contract - or (c) materially changes her position justifiable reliance on the contract. Once the beneficiary's rights have vested - the con

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2. A situation where one person unfairly benefits from a transaction






3. This is when the appellate court send the case back to the lower court for a new trial.






4. 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






5. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd






6. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






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






8. Place of permanent residence






9. Torts and contracts... represents law that regulates the relationships between parties.






10. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






11. 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.






12. 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.






13. Earliest form of a system of laws (first seen in Babylon - 1792 BC). It is a system of laws based on an established code. The modern civil law systems are based on the codes founded in the Roman Empire. Civil law systems are used in France - Spain -






14. 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






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






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






17. Negative causation - due diligence defense - ...






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






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






20. 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






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

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






24. Grants employees the right to bargain as a group and to establish - join - or assist labor organizations or unions. It requires the employers to bargain directly with the employees' representative. It establishes guidelines for the kinds of activitie






25. 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






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






27. A set of statements reflecting generally agreed upon pronouncements of common law contract rules.






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






29. Actual performance of an obligation






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






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






32. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired






33. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






34. Consent after the lawyer has adequately informed the client about the conflict and not only has explained to her the material risk associated with the conflict but also has made available her reasonable alternatives to the proposed conflict






35. When a party unlawfully indicate that he will not perform when the performance is due.






36. The person who assigns her rights






37. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions






38. Laws designed to ensure that employees who have work-related injuries receive compensation for those injuries without having to engage in litigation. Each state has worker's compensation statute - setting forth a specific level of benefits that emplo






39. 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






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






41. The power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting






42. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.






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. Words or actions an individual may have intended - but did not communicate






45. 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






46. 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)






47. 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).






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. When there is no bargained-for exchange - because there is no exchange.






50. 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