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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. 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






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






3. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan






4. This regulate the discharge of pollutants into the water. It authorizes the EPA (Environmental Protection Agency) to determine the permissible levels of contaminants in the water to ensure a safe water supply - and to set standards aimed at meeting t






5. A company subject to the Exchange Act






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






7. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






8. 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






9. The obligation to establish his claims first






10. 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






11. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






12. 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






13. 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






14. 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






15. They represent losses that result from other transactions that are dependent upon the breached contract






16. 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






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






18. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.






19. When the court finds that one party lacks choice or there are gross inequities in the bargaining positions between the two parties (use of adhesion qualifies) A contract becomes voidable.






20. It is a document containing information that must be delivered to investors prior to their securities' purchase. It is designed to contain all the information that an investor needs to evaluate the security and risk associated with purchasing the sec






21. Prohibits institutions from discrimination related to credit applications






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






23. It regulates chemical substances






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






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






26. A pre-trial motion when the pleadings are vague or ambiguous.






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






28. 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






29. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






30. 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






31. Directors - certain officers - and owners






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






33. Laws that states have passed that aim at regulating securities transactions within their states.

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34. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






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






37. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






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






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






40. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th






41. Created through the Occupational Safety and Health Ac. It is federal administrative agency that works with employers and employees to ensure compliance with workplace safety standards. It requires employers to maintain information on employee acciden






42. A distinct mark or symbol that identifies a business and its products






43. Requires agencies to provide citizens with information they request - unless the information falls within certain exempted categories (national defense or trade secrets).






44. Exempts transactions by any person other than an issuer or underwriter and any transaction that does not involve a public offering.






45. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible






46. 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.






47. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover






48. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






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






50. An agreement of when the promisee agree to accept different performance from the original promisor in exchange for a release of the original agreement. However - the original obligation is not discharged until there has been satisfaction.