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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. 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)






2. The property that is the subject of a security interest






3. Laws created by city councils or county boards - aimed at local matters






4. 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






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






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






7. The first court to consider an action






8. It requires anyone who handles hazardous wastes to keep particular records of their activities - and comply with various rules and standards regarding their disposal of waste






9. 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.






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






11. The court reviews the...1) Express words and conduct of the party 2) Course of performance 3) Course of dealing (conduct of parties before the transaction 4) Trade usage






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






13. A quarterly report required by the Exchange Act






14. 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.






15. 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.






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






17. An assignment becomes void when it conflicts with a statute or public policy - materially changes teh obligor's duty - increases the burden or risk imposed by the contract - impairs the obligor's prospects of getting a return performance - or substan






18. Prohibit discrimination based on pregnancy or childbirth






19. 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






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






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






22. The agreement to create a security interest






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






24. 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






25. All total breaches are material breaches. However - a total breach have factors including whether there is a likelihood of a cure - further delay will prevent the promisee from making alternative arrangements - or prompt performance is a critical ele






26. When there is no bargained-for exchange - because there is no exchange.






27. This means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties (if one party intends to make the contract - while the other only pretends but does not intend - the court will recognize






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






29. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)






30. 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






31. The amount of benefit one party conferred on the other - designed to prevent unjust enrichment - as though no contract had been formed.






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






33. Offering made to purchase all or a portion of the shares of a specific company






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






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






36. Hindrance (a party prevents a condition from occurring) - a party's material breach - a party's anticipatory repudiation - a party's substantial performance - and an agreed upon waiver.






37. Prevents discrimination against employees who are 40years old or more






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






39. Treaties entered into between two nations






40. Enacted in 1969 to protect the environment from the actions of public or private actors. It declared a policy and promoted efforts to prevent or eliminate environmental damage. It also ensures that public and private actors better understand the ecol






41. State statues that are aimed at recognizing corporation's right to behave in a socially responsible manner






42. One of the primary federal federal statutes






43. Obtaining consumer's private financial information under false pretenses






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

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






46. These rules are used by the court to determine how the contract should be construed: These rules include: a) preferring an interpretation that makes the contract valid and enforceable b) interpreting the contract a whole c) Giving specific provisions






47. People who are below the age of majority (which varies from state to state). Any contract that they are a part of is void - unless - (a) sometimes when the minor intentionally misrepresented his age and caused the other party to rely on teh misrepres

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48. 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






49. 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.






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