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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. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).






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






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






4. Establishes certain rules for the proper resale - including the requirement that such securities must be held for at least one year - and sold through a broker in a transaction that involves a limited percentage of securities.






5. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.






6. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres

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7. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report






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






9. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






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






11. 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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12. Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






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






14. The obligation to establish his claims first






15. Negative causation - due diligence defense - ...






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






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






18. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






19. Impossibility - impracticability - or frustration of purpose. The event that caused the change in circumstances must be proved to have been unforeseen.






20. An exemption for certain small offerings






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






22. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.






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






24. An assertion that is not in accord with the facts. A contract becomes voidable when it is shown that a misrepresentation was made - it was material - and the party seeking avoidance reasonably relied on it.






25. When a court believes that a contract is so one-sides and unfair that it would be unconscionable to enforce it. (Two different types are substantive and procedural) A contract becomes voidable






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






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






28. 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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29. When both parties are mistaken - the mistake concerns a basic assumption on which the contract was made that has material impact on performance - and the party seeking to avoid performance has not assumed the risk of the mistake. Contract is voidable






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






31. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






32. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






33. 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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34. Revocability relates to situations when an assignment can be taken away from the assignee. When an assignment is supported by consideration - it irrevocable - and vice-versa. If an assignment is irrevocable - then the assignor does not have the right






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






36. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






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






38. The right to hold a security interest on a debtor's property.






39. The person who is bringing the suit






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






42. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






43. This sets standards for federal agency rule making as well as standards for hearings conducted by such agencies. A court appeal is not allowed until all administrative remedies have been exhausted. Courts do not overturn agency actions unless they ar






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






45. It is when a jury cannot reach a consensus. As a result - there must be a new trial with a different jury.






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






47. Once a beneficiary's rights have vested - she has enforceable claim against the promisee because the promisee's act was gratuitous. The beneficiary's rights arise from the contract between the promisor and the promisee

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






49. 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.






50. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage