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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. Constitutes conduct that improper or unethical. A tort action of negligence against lawyers for failing to satisfy their professional duty of care owed to their clients.






2. 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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3. An exchange (something bought and sold - with both the good and the money changing hands) immediately executed






4. The party seeking to appeal the previous court's decision






5. The written set of charges against the defendant - which is presented to a grand jury.






6. The agreement to create a security interest






7. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






8. 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






9. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






10. 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 -






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






12. Not discriminating against foreign product - thereby treating all products within their border equally






13. 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






14. 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.






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






16. 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.






17. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






18. They arise when there is no actual contract - but is 'implied in the law' - and is sometimes by judges in order to avoid injustice






19. Acceptance is effective when the offeree sends it - no matter the type of communication. However - a revocation becomes valid when the offeree receives it. Again - if the offeree changes his mind - and sends two different messages - whichever reaches

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20. 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






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






22. Federal courts that hear issues focused on a particular subject - such as federal tax courts and federal bankruptcy courts.






23. Inadequate warning of danger - which can be construed as a design defect






24. 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






25. 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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26. Regulates the handling of the pesticides being exported from and imported into the U.S.






27. A quarterly report required by the Exchange Act






28. 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






29. It focuses on the clean up of abandoned or historical hazardous waste sites - for which it established a 'Superfund'. The EPA (Environmental Protection Agency) identifies particularly egregious sites and places them on a National Priorities List. The






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






31. Administers federal labor laws






32. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






33. 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.






34. 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






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






36. The exchange of promises or an exchange of a promise for a performance.






37. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






38. It is the opportunity for each party to present their arguments to the appellate court. However - it is not always allowed.






39. An interest in property or collateral granted in order to ensure payment of a debt or obligation






40. 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






41. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.






42. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend






43. 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






44. 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






45. One of the primary federal federal statutes






46. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






47. 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.






48. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






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






50. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time

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