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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. An exemption for securities sold outside of the U.S.






2. Contracts that are formed for the intended benefit of some third party.






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






4. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard






5. Prohibits differences in wages based on the gender of men and women who perform substantially same work.






6. Agreements between competitors to set particular prices for their products (a horizontal agreement)






7. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






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






9. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






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






11. They represent the amount of money a party has spent in justifiable reliance on a contract.






12. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).






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






14. A current report required by the Exchange Act






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






16. A quarterly report required by the Exchange Act






17. 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 -






18. An error about a fact in existence at the time the contract was make. A contract entered into based on a mistake is voidable






19. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s

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20. An annual report required by the Exchange Act






21. Offering made to purchase all or a portion of the shares of a specific company






22. Rules of ethics that govern the practice of law and the conduct of lawyers






23. (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)






24. The right of both parties to gain information concerning the other party and her witnesses.






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






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






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






29. 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'.






30. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety






31. The person being sued






32. Both a rejection and termination of the original offer.






33. 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.






34. Law that addresses crimes and punishment of crimes - and regulates individual actions so that they follow the socially accepted behavior. Criminal laws represent crimes against society/state.






35. The principle used by courts when both parties are equally guilty of illegality - or when the party seeking restitution is more at fault than the other party

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






37. An exemption for certain small offerings






38. When a contract is presented on a 'take it or leave it' basis - leaving no room for bargaining. The courts qualifies this as procedural unconscionability - making the contract voidable






39. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






40. 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






41. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






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






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






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






45. Manages the nation's social security system






46. 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 -






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






48. The property that is the subject of a security interest






49. 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






50. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading