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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 agreement of when the promisee agree to accept different performance from the original promisor in exchange for a release of the original agreement. However - the original obligation is not discharged until there has been satisfaction.






2. Negative causation - due diligence defense - ...






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






5. It is a report prepared by the president. It includes an assessment of the environment and environmental policies - current and future environmental trends as well as potential remedies for deficiencies in the the nation's environmental programs and






6. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






7. When the debtor voluntarily initiates the bankruptcy proceedings






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






9. Regulates air and water pollution as well as address problems associated with certain toxic substances






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






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. Prohibit agreements among corporations that would unreasonably restrain trade or create monopolization in an industry






13. Legally recognized injury






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






16. The state representative in a criminal trial - since a crime is against the state. It bears the burden of proof






17. Where the actual trial occurs - i.e. - where parties present their evidence to a judge or jury.






18. 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






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






20. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d






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






22. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.






23. 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.






24. A motion that can be filed by either party at any time. The motion will be granted by a judge when finding that (a) there is no genuine issue of material fact - and as a result - (b) one party is entitled to prevail int he case as a matter of law.






25. A situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach






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






27. The obligation to establish his claims first






28. 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.






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






30. Agreements to restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)






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






32. 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.






33. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






34. Employers make payments to retired employees based on the length of their employment and the wages they received.






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






36. (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)






37. A U.S. program that coordinates efforts to provide protection for the investment interests of it's citizens doing business in foreign countries - and improve investor's access to foreign markets. Helps develops international policies and laws






38. The first court to consider an action






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






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






41. 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.






42. An intent to deceive or defraud






43. 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






44. The promisor's failure to perform in accordance with the terms of the contract






45. A group of corporations or businesses that combine together in order to enhance their economic strength and market power. `






46. If a promisee is conferring a benefit on a third party in order to satisfy a prior obligation - the beneficiary is referred to as a 'creditor beneficiary'






47. 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.






48. 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






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

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50. The person who is bringing the suit