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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. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.






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






3. These people are presumed to be incidental beneficiaries - so that they cannot sue the government. Nevertheless - this presumption is rebutted if (a) the government contract or a state clearly confers a private right of enforcement - or (b) the gover






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

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5. The concept that the corporation only owes a duty to their shareholders and their financial concerns. 'Dodge v. Ford motor Company' reflects this concept






6. 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






7. 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






8. 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






9. Issues rules and guidelines aimed at ensuring the effective implementation of anti-discrimination laws. It established procedures for employees who believe they are victims of discrimination.






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






11. (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)






12. 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






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






14. When a court believes that a contract is so one-sides and unfair that it would be unconscionable to enforce it. (Two different types are substantive and procedural) A contract becomes voidable






15. 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.






16. An intent to deceive or defraud






17. Contracts that are formed for the intended benefit of some third party.






18. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior






19. An transaction between businesses in competition with one another. Such transactions are per se illegal because they significantly reduce competition. Ex: price fixing - production quotas - group boycotts - and market divisions






20. This is when the appellate court send the case back to the lower court for a new trial.






21. When an adult has a mental disability and thereby can disaffirm a contract and contract with him is voidable. Any bargained-for exchange must be returned or there must be restitution.






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






23. Has appellate jurisdiction (but limited to reviewing the decision of the appellate court) and the power to remand and review decisions of state supreme court. When it reviews the decision of the lower court involving interpretations of legal rules -






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






25. 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'






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






27. A misrepresentation made with knowledge of its inaccuracy






28. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






29. Previous decisions made by decisions - by which the current judges must abide by.






30. Directors - certain officers - and owners






31. Potential responsibility for payment of damages or other court - ordered enforcement as a result of a ruling in a lawsuit. Civil liability is not the same as criminal liability - which means 'open to punishment for a crime.'






32. When both parties agree to rescind the contract






33. 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






34. 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.






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






36. Created by the Securities Exchange Act (SEC). Oversees the regulation of these federal security laws






37. 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






38. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.






39. It is the period in which a person may bring her claim. A contract becomes unenforceable after the statute of limitations has expired. A new contract must be created






40. The test of government regulations - of whether it is rationally related to a legitimate government interests. All classifications are subject to a rational basis test.






41. Safeguards consumer's personal information by ensuring that financial institutions that have access to private financial information have protection plans for that information - ensures that consumers receive better disclosure regarding a financial i






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

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43. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)






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






45. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards






46. 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.






47. A party's damage award will be reduced by any loss he did or could have avoided.






48. The difference between the value of the property as substantially complete and the value of the property upon full performance






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






50. 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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