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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. Institutional investors - people with over a million dollars in net worth - venture capital firms - trusts with assets over $5 million - directors and executive officers of the issuing company - and other specified investors.






2. 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






3. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions






4. A company subject to the Exchange Act






5. When the stimulated amount (from the contract in case of breach) is unreasonable - it construed as a penalty and considered unenforceable.






6. When an offeror terminates his offer before an agreement has been made (can be done through words). It can also be revoked when the offeror takes actions that are inconsistent with the intent to be bound (unless the offeree has paid to keep the offer






7. 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






8. Protection of communications between an attorney and her client. Neither party is compelled to disclose such communications to the court. Only the client can waive the privilege.






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






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






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






12. When the creditor initiates the proceedings.






13. Rules of ethics that govern the practice of law and the conduct of lawyers






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






15. Automatic violations of the Sherman Act






16. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration






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






18. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship






19. Consideration means that there must be a bargained-for-exchange - and the promisee must incur some legal detriment. Consideration is necessary for a person seeking to enforce a contract. Courts generally do not evaluate the adequacy of the considerat






20. 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






21. 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






22. Duties that involve some personal service or skill or that would materially change the obligor's expectancy under the contract may not be delegated without the obligee's consent. When a contract prohibit assignment - then it also cannot be delegated.






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






24. Portions of a registration statement that are certified by an expert such as financial statements or legal opinions. An expert only has liability for the expertized portion






25. Corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents that are affected by those policies. This also includes the idea of preserving the environment and corporate charitable giving.






26. Securities issued by the federal government - state governments - or any of their subdivision; securities issued by a charitable organization; issued by banks or saving or loan institutions - issued by a receiver or trustee in bankruptcy;. issued wit






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






28. Twelve members of jury that hear the evidence at the trial court. The Judge rules on the evidence and guides the jury on questions of law and proper rules of procedure.






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






30. A distinct mark or symbol that identifies a business and its products






31. An intent to deceive or defraud






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






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






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






35. 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.






36. The principle used by courts when both parties are equally guilty of illegality - or when the party seeking restitution is more at fault than the other party


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






38. 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






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






40. A perfected security interest takes priority over unperfected security interest. While the first person to file his security interest has priority. If neither party perfected by filing - then the first person to perfect her security interest has prio






41. An event that is not certain to occur. A contract is subject to a condition when the parties agree that performance is contingent of the occurance of that certain event.






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






43. The difference between the value of the performance a party should have received and the value of the performance the party actually received.






44. The person who assigns her rights






45. A contract that is made where two promises are outstanding.






46. If the parties to a contract state that consideration has been given - but it was not - then the statement will be viewed as sham consideration and be legally insufficient.






47. Discrimination based on race or sex






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






49. Courts that do no have broad subject matter jurisdiction because they can only hear particular types of cases. For example - Federal courts have limited jurisdiction and do not have broad subject matter jurisdiction.






50. An offeror undertakes 'joint obligation' when he has made an offer to more than one person - which was then accepted.