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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. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.






2. It regulates chemical substances






3. An exemption for offerings that occur primarily within one state.






4. The obligee who officially assigned over his rights






5. 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






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






7. Established by the Export Administration Act - it provides a framework for regulating exports and issuing licenses for exports subject to controls






8. States allow corporations to make donations - and courts uphold those donations as long as they are reasonable






9. The obligor does not need to provide consent - but does need to be given notice.






10. It is a duty that a person is already obligated to perform. The promise to perform a pre-existing duty is not a legal detriment. However - a legal detriment will exist if one promises to a performance that is different from the pre-existing duty - o






11. 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






12. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






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






14. The Hart-Scot-Rodino Act - which requires corporations to notify FTC and the U.S. Justice Department when they engage in a merger. Mergers are prohibited under the Act if the market related to the merger is substantially concentrated and if - after t






15. A group of between 16 and 23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime. A grand jury is required in the 5th Amendment for all criminal cases. The grand jury has the power to subpoena witnesses and doc






16. 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






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






18. A written request for reasonable assurances regarding a party's intention to perform. Until such assurance is received - the demanding party can suspend his performance. Failure to receive adequate assurance demanded within a reasonable time can be c






19. When both parties agree to rescind the contract






20. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






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






22. This involves filing a registration statement with the SEC - which contains information about the securities to be registered as well as the company that is issuing the security. Included within the registration statement is a prospectus






23. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






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






25. 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'.






26. Punitive damage - non-economic damages - and attorneys' fees






27. This refers to the legal ability to forma contract (proof of lack of contract makes a contract voidable)






28. The collection of state and federal laws that govern the employment relationship - other than laws addressing collective bargaining and labor relations






29. Regulates radio - television - and other forms of interstate communications






30. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

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31. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






32. Claims that the defendant has against the plaintiff






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






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






35. 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






36. 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






37. 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






38. 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.






39. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.






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






42. When the creditor initiates the proceedings.






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






44. Regulates stock exchanges - the over-counter market - and individuals who assist investors with trading activities.






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






46. A company becomes a 'public company' when it issues its securities pursuant to this registration process.






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






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






49. The principle that judges must make decisions consistent with precedent (previous decisions) of their own and higher courts. (Although judges have discretion to overturn their court's previous decisions - the principle of 'stare decisis' encourages t






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