Test your basic knowledge |

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. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices






2. 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


3. An exemption for offers in which the aggregate price is less than $1 million (no restrictions on the number of people offering)






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






5. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize






6. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






7. Under Section11 - the issuer - its directors - the chief executive officer - the chief financial officer - the underwriter - and any expert is liable. The issuer can avoid liability if he can show negative causation.






8. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for






9. A writ of certiorari is granted by the Supreme Court to a party appeal that they have decided to hear. It requires that four of the nine justice agree to hear the case. The majority of cases appealing to the Supreme Court are denied a writ of certior






10. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






11. Government acts that create an agency - along with establishing it's goals - powers - and the authority to make rules and regulations regarding a specified issue.






12. When the representation of one client will be directly adverse to another client - or there is a significant risk that the representation of a client will materially limit the lawyer's ability to provide effective representation to another client. Th






13. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






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






15. The documents that parties file in connection with their lawsuit






16. Claims that the defendant has against the plaintiff






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






18. 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.






19. Only one of the party wants to rescind the contract - which requires legal grounds to do so.






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






21. 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






22. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu






23. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






24. An order from the court to perform the contract pursuant of its terms. This is only does when the damage remedy is inadequate and the equitable need for such performance outweighs the burden of supervision and harm to the defendant.






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






26. The person being sued






27. Administers federal labor laws






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






29. When both parties agree to rescind the contract






30. An annual report required by the Exchange Act






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






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






33. 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.






34. 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)






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






36. 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






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






38. (1948) The first international agreement on trading rules and standards. The rules help guide the WTO on how to create trade agreements...






39. Ethical behavior is guided by duties or obligation. John Locke referred to these obligations as 'natural rights' that are natural - universal - and inalienable (as seen in the Declaration of Independence)






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






41. A current report required by the Exchange Act






42. Suspect classifications meant classification based on race - religion - national origin - or alienage - or involving a fundamental right. If regulations involves a suspect classification - it will undergo strict scrutiny - which such regulations rare






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






44. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e






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






46. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






47. When a court examine the 'four corners' of a contract - this means that they will only examine the document itself.


48. 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






49. The obligee who officially assigned over his rights






50. The power of the Supreme Court to review federal or state law as constitutional or not. It is the result of the 'Marbury v Madison' case.