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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. A situation where one person unfairly benefits from a transaction






2. 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 -






3. Whether or not the promisee can bring an action against the promisor depends upon the status of the beneficiary. If the promisor fails to perform his obligations owed to a creditor beneficiary - the promisee can either compel the promisor to render s


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






5. Regulates private pension plans. It creates standards for their plans. It also requires employers to provide adequate funds for their plans - and to appoint an administrator for the plan who has fiduciary responsibility to administer the plan in the






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






7. When the offeree pays for the offeror's promise to keep the offer open for a period of time - the offer will become irrevocable during that period (rejection - counteroffer - or death can affect the contract during that time)






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






9. 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.






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






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






12. An exemption for certain small offerings






13. 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.


14. Oversees the purchase and sale of securities






15. An offer is not viewed as accepted unless the acceptance corresponded exactly with the terms of the offer. Therefore - any response by the offeree that changed the terms of the agreement would be treated as a rejection.


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


17. Rule 12(b) of the Federal Rules also allows a defendant to make a motion to dismiss based on (a) a lack of subject matter jurisdiction - (b) lack of person jurisdiction - (c) lack of venue - (d) the lack of venue - (e) the failure to join necessary p






18. Claims that the defendant has against the plaintiff






19. It is the power over the particular parties in a case. (a) The Supreme Court in 'Pennoyer v. Neff' - held that a defendant's physical presence in a state is sufficient for the state to exercise personal jurisdiction. (b) A person can be subject to pe






20. 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.






21. (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)






22. Created through the Occupational Safety and Health Ac. It is federal administrative agency that works with employers and employees to ensure compliance with workplace safety standards. It requires employers to maintain information on employee acciden






23. It is a judgment notwithstanding the verdict requires the court to find that the evidence does not support the jury's verdict. If the court makes such a finding - it will overturn the jury's verdict.






24. Treaties entered into between two nations






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






26. When a written contract represents a full - final - and complete record of the parties' agreement. In this case - parol evidence in inadmissible.






27. A body of rules and system based on the decisions that judges have made in the past about such cases. It originated in England. In the late 1700s - Sir William Blackstone published 'Commentaries on the Law of England' - which provides the most compre






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






29. The creditor's right to take possession of the property is called foreclosure






30. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.






31. 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






32. A person who is not an intended beneficiary






33. Liability imposed on sellers and other for compensating people who have been injured as the result of defective product. Liability actions can be brought as tort or contract claims (breach of warranty).






34. The party that won in the previous court trial - but the other party is appealing the decision.






35. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices






36. Regulates the handling of the pesticides being exported from and imported into the U.S.






37. 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.






38. 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


39. 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






40. According to the test articulated in 'SEC v. Howey Co.' - an investment contract represent an investment of money - in a common enterprise - when the purchases is led to expect profits - solely from the efforts of others.






41. In order for a contract to be enforceable - the terms of the contract must be definite and certain. In order for a contract to be 'definite and certain' - it must contain all the essential terms (names of parties - prince - subject matter - and time


42. Treaties among several parties that seek to allocate rights and responsibilities among the parties






43. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act






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






45. When the creditor initiates the proceedings.






46. Prohibit mergers and acquisitions that may reduce competition or create a monopoly






47. 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






48. Manages the nation's social security system






49. It is the power to decide the type of case at issue. Federal courts do not have broad subject matter jurisdiction because they can only hear particular types of cases. Therefore - their subject matter jurisdiction results from either diversity jurisd






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