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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. Place of permanent residence






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






3. A condition that cuts off a pre-existing duty






4. It is an action to avoid unjust enrichment.






5. An intent to deceive or defraud






6. Based on the Fraud on the Market Theory - it is presumed when stocks are traded in an active securities market






7. The government has the right to take property. This power is limited in that the property has to be for public use - and that the owner must receive just compensation.


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






9. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






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






11. Directors - certain officers - and owners






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






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






14. Regulates trusts and monopolies






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






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






17. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






18. When the courts' power to hear cases arising under the Constitution - federal laws - or U.S. treatises. Federal question jurisdiction is exclusive.






19. 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






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






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


22. 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






23. 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.






24. Latin for 'the thing speaks for itself' - when a plaintiff establishes the harm would not ordinarily occur without someone's negligence - the instrument creating the harm was under the sole and complete control of the defendant at the time the harm o






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






26. A trivial defect in performance (the opposite of material breach).






27. Prohibits companies from seeking to bribe foreign official in order to obtain a business advantage in their country






28. 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






29. A uniform law that provides legislation for various aspects of commercial law. It has been accepted by all states except Louisiana.


30. 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






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






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






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






34. When the debtor voluntarily initiates the bankruptcy proceedings






35. When the creditor initiates the proceedings.






36. It is the right to receive notice of any actions that would deprive a person of life - liberty - or property - and allows for the person to have the opportunity to present a case in a fair procedure before a neutral decision-maker. A clause found in


37. 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






38. 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






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. A quarterly report required by the Exchange Act






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






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






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






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






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






46. A beneficiary's rights vest when she (a) manifests her assent to the contract - (b) brings suit to enforce the contract - or (c) materially changes her position justifiable reliance on the contract. Once the beneficiary's rights have vested - the con


47. 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.






48. Section 24 of the Restatement defines an offer as a 'manifestation of willingness to enter into a bargain - so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.'






49. An exemption for securities sold outside of the U.S.






50. 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)