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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. It is an action to avoid unjust enrichment.






2. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.

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






4. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.






5. Prohibits institutions from discrimination related to credit applications






6. 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






7. 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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8. 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






9. The UCC defines 'goods' as all things that tare movable at the time of the contract. Article 2 of the says that the UCC governs all transactions for the sale of goods.






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






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






12. Directors - certain officers - and owners






13. 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.






14. 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






15. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

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16. 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 -






17. It imposes a civil liability for material misstatements or omissions in a prospectus or oral statements that relate to a prospectus.






18. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






19. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






20. Manages the nation's social security system






21. 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)






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






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






24. 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.






25. The party that won in the previous court trial - but the other party is appealing the decision.






26. 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






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






28. (A form of consequentialism) It is the belief that an action is justified as long as it does the greatest good for the greatest number of people (Advocators: Jeremy Bentham and John Stuart Mill)






29. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






30. 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.






31. This is when an assignment is not supported by consideration and is revocable. It will only become irrevocable when (a) the obligor has performed her obligations to the assignee - (b) the assignor delivers the assignment in writing to the assignee -






32. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






33. 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.






34. The US appeals or appelate court. If a party appeals the district court's decision - it can be brought to the federal court of appeals or the federal court of appeals. It has appellate jurisdiction.






35. This when the evidence favoring the plaintiff's allegations is stronger than the evidence presented against her position. In a civil case - the jury must decide that the plaintiff proved her case by 'preponderance of evidence'.






36. 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.






37. 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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38. 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






39. The creditor's right to take possession of the property is called foreclosure






40. Legally recognized injury






41. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






42. Place of permanent residence






43. 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






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






45. The difference between the value of the property as substantially complete and the value of the property upon full performance






46. 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.






47. Protection of communications between an attorney and her client. Neither party is compelled to disclose such communications to the court. Only the client can waive the privilege.






48. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






49. A supervening stature makes a contract illegal - and thereby makes performance impossible






50. 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.