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






2. 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 -






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






4. 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






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






6. A person is an intended beneficiary if recognition of a right to performance is appropriate to effectuate the intention of the parties - or either the performance of the promise will satisfy the promisee's obligation to pay money to the beneficiary -






7. This regulate the discharge of pollutants into the water. It authorizes the EPA (Environmental Protection Agency) to determine the permissible levels of contaminants in the water to ensure a safe water supply - and to set standards aimed at meeting t






8. Every company that issues shares to the public consistent with the Securities Act - every company with securities registered on a national securities exchange - every company with assets in excess of $5 million and at least 500 shareholders - and eve






9. 14th Amendment provides that no state shall deny 'equal protection of the laws'. As interpreted - both 14th and 5th Amendments apply to 'discriminatory laws'.






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






11. An improper threat that leaves the victim no reasonable alternative but to comply with an agreement






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






13. Speech regarding commercial or economic activities. Congress has a broad ability to regulate commercial speech. (However - government regulations based on content are subject to strict scrutiny - meaning that they will be sustained only if they are n






14. 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






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






16. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.

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17. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.






18. Government's 'time - place - and manner' restrictions of content are subject to intermediate scrutiny.






19. An exemption for offers: no limitation on dollars - but less than 35 people (sophisticated) - excluding accredited investors.






20. The agreement to create a security interest






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






22. 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






23. 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.).






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






25. Inadequate warning of danger - which can be construed as a design defect






26. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).






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






28. 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.






29. Regulates trusts and monopolies






30. 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






31. If the promisor substantially performs under teh contract






32. Agreements to refrain from doing business with a particular person/persons/entity in order to force such a person/entity to pay higher prices (a horizontal agreement)






33. 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.






34. Prohibits institutions from discrimination related to credit applications






35. This takes place when a crime has been committed against the state. In this case - there is a prosecution - which writes an indictment and sends it to the grand jury. If the grand jury decides that there is sufficient evidence - it will return the pr






36. The person who assigns her rights






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






38. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of






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






40. 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.






41. It represents a request for the court to take some action. A motion can be filed by a defendant.






42. When a control makes a profit purchasing and selling her shares within a six-month period






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






44. It imposes civil liability for material misrepresentations or omission in the registration statement. Reliance or causation does not need to be proven.






45. When the creditor initiates the proceedings.






46. Words or actions an individual may have intended - but did not communicate






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






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






49. The National labor Relations Act established this administrative agency. It helps resolve disputes between employees and employers






50. An intent to deceive or defraud