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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. Seeks to promote market economics and democratic governments






2. A court reference to the notion that there must be mutual agreement about the exchange to be performed

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3. 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.).






4. Regulates consumer credit reporting agencies and provides procedure for regulating the proper use and release of credit reports.






5. 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.






6. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






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






8. 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)






9. It represents the defendant's request for a new proceeding to determine if he is being unlawfully deprived of his liberty. It is limited to people in custody. It can only be used after all other methods have been exhausted.






10. 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






11. 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






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






13. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






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






15. The promisor can raise any defense against the beneficiary that he would have been able to raise against the promisee. The promisor cannot raise a defense against the beneficiary and the promisee.

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16. Laws that provides employees with compensation for a set period of time when they become unemployed through no fault of their own. It is a combined federal and state insurance program in which they both contribute money - along with the employers. Ea






17. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






18. A transaction that does not involve a public offering is also referred to as a private placement. In 'SEC v. Ralston Purina Co.' the Supreme Court defined a private placement as a sale to persons who do not need the protection of securities laws.






19. Obtaining consumer's private financial information under false pretenses






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






21. Actual performance of an obligation






22. It is broad subject matter jurisdiction over all things that are not reserved for the federal courts






23. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






24. This means that each party to the contract must manifest or reveal her intent to be bound to a given exchange. Mutual assent is a requirement for a contract to be formed. There must be an offer and an acceptance.






25. A quarterly report required by the Exchange Act






26. When the debtor voluntarily initiates the bankruptcy proceedings






27. Created by the Employee Retirement Income Security Act - to insure private benefit plans - and employers must pay premiums to the PBGC to support such insurance.






28. 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 -






29. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'






30. A body of rules and system based on the decisions that judges have made in the past about such cases. It originated in England. In the late 1700s - Sir William Blackstone published 'Commentaries on the Law of England' - which provides the most compre






31. Consent after the lawyer has adequately informed the client about the conflict and not only has explained to her the material risk associated with the conflict but also has made available her reasonable alternatives to the proposed conflict






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






33. An agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money. In the event of a default - the security interest allows the creditor to take possession of the property/asset in order to






34. 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 -






35. The obligee who officially assigned over his rights






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






37. A trivial defect in performance (the opposite of material breach).






38. 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






39. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






40. 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.






41. What the courts uses to assess whether or not a particular restraint (trusts that restrain trade) is reasonable (is it economically efficient)






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






43. 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.






44. 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






45. A contract that is made where two promises are outstanding.






46. It is an action to avoid unjust enrichment.






47. Duties that involve some personal service or skill or that would materially change the obligor's expectancy under the contract may not be delegated without the obligee's consent. When a contract prohibit assignment - then it also cannot be delegated.






48. The obligation to establish his claims first






49. Treaties among several parties that seek to allocate rights and responsibilities among the parties






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