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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. 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






2. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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3. It regulates chemical substances






4. An order prohibiting a party from engaging in certain conduct. A count will only issue an injunction if the damage remedy is inadequate and the injunction is necessary to prevent irreparable harm to the non-breaching party.






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






6. 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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7. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years






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






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






10. Directors - certain officers - and owners






11. 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






12. It literally means 'new'. Here it means an entirely new interpretation of legal rules - without deference to the lower court's judgment.

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13. 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






14. Prevents discrimination against employees who are 40years old or more






15. Punitive damage - non-economic damages - and attorneys' fees






16. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






17. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5






18. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.






19. Provides specific (3) categories for exemption: Rule 504 - 505 - 506






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






21. Regulates radio - television - and other forms of interstate communications






22. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






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






24. It is an action to avoid unjust enrichment.






25. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






26. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason






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






28. An exemption for certain small offerings






29. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






30. 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






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






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






33. 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






34. When the plaintiff's damages were caused by something other than the misrepresentation or omission






35. 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.






36. 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






37. A current report required by the Exchange Act






38. Negative causation - due diligence defense - ...






39. Treaties entered into between two nations






40. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other






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






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






43. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)






44. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con






45. 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'.






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






47. Liability extends to ___________ - without the plaintiff needing to proof of reliance or causation. The seller can avoid liability by showing negative causation - the plaintiff knew that the statements in the prospectus at the time of her purchase -






48. If the promisor substantially performs under teh contract






49. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






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