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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls
Tie-in agreement
Third party beneficiary
Defined benefit plans
Export Administration Regulations (EAR)
2. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance
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3. These are approximate damages to show the necessary amount to compensate the party if the breach had not occurred and the contract has been fully performed. Expectation damages are comprise of direct and consequential damages.
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4. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984
Examples of Uniform Laws
Changed circumstances that allow a party to be excused from performance under the contract
Limited jurisdiction
Incidental beneficiary
5. Ethical behavior in terms of its consequences ('the end justifies the means')
Regulation S of the Securities Act
Consequentialism
'de nuvo'
Exclusive dealing agreement
6. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).
Section 5 of the Securities Act
Uniform Commercial Code ('UCC')
Occupational Safety and Health Act
Rational basis test
7. 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
'Mailbox' rule
Defined benefit plans
Personal jurisdiction
Concurrent conflict of interests
8. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions
Regulation D of the Securities Act
Employee Retirement Income Security Act (ERISA)
Prosecution
Nonexpertized portions
9. 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
Horizontal agreement
Other constituency statutes
Statute of limitations
Performance
10. A motion claiming that the plaintiff has not established enough evidence to prove her case. The motion can be made by the defendant when the plaintiff has finished completed presenting the case.
Motion of directed verdict or of dismissal
Precedent
National Labor Relations Act
Section 12(a)(2)
11. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.
National Institute for Occupational Health
Attachment
Changed circumstances that allow a party to be excused from performance under the contract
Section 4 of the Securities Act
12. 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
Equal Employment Opportunity Commission (EEOC)
United States Bankruptcy Code ('Code')
National Ambient Air Quality Standards
Hung jury
13. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions
'meeting of the minds'
Rules of construction
Federal circuit court of appeals and the federal court of appeals
Federal Insurance Contributions Act
14. 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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15. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.
Defined contribution plan
Process of assignment
Promisee's rights
Voluntarily proceeding
16. The documents that parties file in connection with their lawsuit
Pleadings
Securities Act Registration
Economic waste
Informed consent
17. The other party to the contract with the oblige - and who is signaling her obligation to the assignee.
Securities and Exchange Commission
Informed consent
Secured transaction
Obligor
18. Place of permanent residence
Process of appealing a case through the three levels of court
'meeting of the minds'
Domicile
Tie-in agreement
19. Also known as 'gap fillers' - the courts will imply certain terms in order to clarify a contract's meaning. These include: 'implied obligation of good faith' and 'obligation to use reasonable efforts'
Federal Trade Commission
Implied terms
Promise
Equal protection
20. (an exception to Title VII) Discrimination is permitted because of the occupation qualifications
Petit jury
Bona fide occupational qualification
Rules of construction
Bilateral Investment Treaty program
21. 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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22. The obligation to establish his claims first
Remand
Strict liability
Who is liable
Burden of proof
23. When a control makes a profit purchasing and selling her shares within a six-month period
Adhesion
Employment discrimination
Short swing profits
Federal Trade Commission (FTC)
24. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.
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25. He has the enforceable right against the obligor because he is considered the real party interest.
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26. They represent losses that result from other transactions that are dependent upon the breached contract
Unilateral rescission
'due process'
Non-recoverable damages
Consequential damages
27. The Securities Act defines securities broadly to includes notes - stock - bonds - debentures - stock subscriptions - voting trust certificates - limited partnership interests - investment contracts - and fractional interest in oil/gas/mineral.
Examples of Uniform Laws
Promisor's rights (in relation to the beneficiary)
Securities
Bilateral investment treaties
28. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.
Materiality
10-K
Penalty
Federal Trade Commission (FTC)
29. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration
Expectation damages (also known as the 'benefit of the bargain')
Organization for Economic Co-operation and Development (OECD)
Social Security Act
Rule of reason
30. 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.
Promisee's rights
Rule 505 of Regulation D of the Securities Act
Vertical agreements
Consideration
31. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)
Option contract
Occupational Safety and Health Act
Involuntary proceeding
Horizontal agreement
32. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action
Securities Act Registration
Tie-in agreement
Verdict
National Treatment
33. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.
Creditor beneficiary
Design defect
Employee Retirement Income Security Act (ERISA)
Answer
34. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)
Pretexting
Legal capacity
Securities Act
Deontological
35. 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
Unjust enrichment
Mortgage
Demand assurance
Securities and Exchange Commission
36. An interest in property or collateral granted in order to ensure payment of a debt or obligation
Organization for Economic Co-operation and Development (OECD)
Content-neutral restrictions
Security interest
Section 11 of the Securities Act
37. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship
Perfected
Tender offers
Examples of Uniform Laws
Performance
38. 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.
Corporate social responsibility
Rule 147 of the Securities Act
Delegation
Employee Retirement Income Security Act (ERISA)
39. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -
Expectation damages (also known as the 'benefit of the bargain')
Intended beneficiary
Rule of reason
Penalty
40. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers
Who is liable
Jurisdiction
'Definite and certain'
National Labor Relations Board (NLRB)
41. Regulates air and water pollution as well as address problems associated with certain toxic substances
Materiality
Offer
Environmental Protection Agency
Diversity jurisdiction
42. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize
Scienter
Misappropriation theory
Objective standard
Assignor
43. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.
10-K
Promisor's rights (in relation to the beneficiary)
'Mirror image' rule
Consumer protection
44. 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)
Motion of directed verdict or of dismissal
Restatement (Second) of Contracts
Expectation damages (also known as the 'benefit of the bargain')
Tie-in agreement
45. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is
Parol Evidence Rule
Satisfaction
Bilateral treaties
Market division
46. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p
Counteroffer
Proxy
Joint obligation
Rule 12b (6) motion
47. 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.).
Taking a contract 'out of the Statute of Frauds'
10-K
Occupational Safety and Health Administration (OSHA)
Post-trial motions
48. Establishes a minimum wage and policies for overtime and prohibits children under 14 from being hired
Excuse of condition
Promise
Assignee's rights
Fair Labor Standards Act (FLSA)
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.
Petit jury
Horizontal agreement
Securities Act Registration
Attorney/client privilege
50. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior
Mutual mistake
Performance
Judgment n.o.v.
Lanham Act