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Test your basic knowledge |
CLEP Introductory Business Law
Start Test
Study First
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 restrict the supply of products in order to drive up the prices of such products (a horizontal agreement)
Organization for Economic Co-operation and Development (OECD)
Unjust enrichment
Production quotas
Pleadings
2. When the act of acceptance is also the act of performance (i.e. - there is only one performance obligation remaining)
Subjective intent
Unilateral contract
'Takings'
Goods
3. Laws created by city councils or county boards - aimed at local matters
National Labor Relations Board (NLRB)
Unilateral mistake
Levels of courts
Ordinances
4. An intent to deceive or defraud
Environmental Protection Agency
Sherman Act
National Labor Relations Board (NLRB)
Scienter
5. Responsibility of a seller or manufacturer for any defective product unduly threatening personal safety
Strict liability
Federal circuit court of appeals and the federal court of appeals
Process of assignment
Design defect
6. When the breach is so central to the contract that it significantly impairs the contract's value to the promisee. In this case - the promisee cannot terminate the agreement - but he can sue and suspend his performance.
Informed consent
Equal Credit Opportunity Act
Material breach
Attorney/client privilege
7. The written set of charges against the defendant - which is presented to a grand jury.
'due process'
Defenses against liability of misrepresentations or omissions
Bilateral investment treaties
Indictment
8. When the creditor initiates the proceedings.
Intended beneficiaries of government contract
Involuntary proceeding
Direct damages
Satisfaction
9. The Constitution makes treaties the 'supreme law of the land'
Treaties authority
Securities and Exchange Commission
Private placement
Judgment n.o.v.
10. When there is no bargained-for exchange - because there is no exchange.
Substantial performance
Public company
Examples of Uniform Laws
Gift
11. 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
Materiality
Foreign Sovereign Immunities Act
Sham consideration
Res ipsa loquitor
12. 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.
'Quid pro quo'
Administrative Procedure Act
Judicial review
National Labor Relations Board (NLRB)
13. When the defendant is a commercial supplier - such as a manufacturer retailer - assembler or wholesaler - and the product reaches the consumer in the same condition it was supplied - the product is unreasonably dangerous consistent with the standard
Lien
Quasi-contract
'Definite and certain'
Strict liability
14. The creditor's right to take possession of the property is called foreclosure
United States Bankruptcy Code ('Code')
Quasi-contract
Subject matter jurisdiction
Foreclosure
15. Employers must provide employees with up to 12 weeks of unpaid leave for a serious health condition - the birth of a child - adoption or placement with the employee of a child in foster care - or the care of a spouse - child - or parent with a seriou
Social Security Act
Strict liability
The Family and Medical Leave Act
Trademark
16. The defendant intended the product to cause harm or know that it was likely to occur. The defendant's conduct fell below the appropriate standard of care. Qualifies as negligence - because the defendant is a supplier because he has a duty. The defend
Employee Retirement Income Security Act (ERISA)
Appellee or respondent
Group boycotts
Liability based on intentional tort
17. A division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.
Federal Trade Commission
Informed consent
Examples of Uniform Laws
Bureau of Consumer Protection
18. Portions of a registration statement that are not certified by an expert such as financial statements or legal opinions
Nonexpertized portions
Pretexting
Employee-at-will
Strict liability
19. Exceptions to the writing contract in the Statute of Frauds. This is when: (a) a party admits in a pleading/testimony in court - that a contract was made - the contract is enforceable against the party to the extent of the admission - (b) performance
20. 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
21. Regulates exports - including implementing export controls - which restrict the exportation of certain goods based on national security and other concerns.
Export Administration Act (EAA)
Substantive unconscionability
Uniform Laws
Deliberation
22. Punitive damage - non-economic damages - and attorneys' fees
Toxic Substances Control Act
Res judicata
Duty to mitigate
Non-recoverable damages
23. The obligor does not need to provide consent - but does need to be given notice.
Charitable contributions
Changed circumstances that allow a party to be excused from performance under the contract
Obligor's rights
Process of assignment
24. Offering made to purchase all or a portion of the shares of a specific company
Misstatement or omission
Tender offers
Anticipatory repudiation
Substantive unconscionability
25. It is a general rule referring to circumstances in which agreements must be in writing - and by extension when oral agreements will be unenforceable. Basic agreements that are covered by the Statute: 1) A promise by an executor to pay the estate's d
Expropriation
Other constituency statutes
Workers compensation laws
The Statute of Frauds
26. 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.
27. A concept referring to laws and statutes aimed at addressing issues of concern to consumers.
Consumer protection
Unjust enrichment
Companies that are subject to the exchange act (Reporting companies)
Substantial performance
28. Researches health and safety issues and recommends regulations. Created through the Occupational Safety and Health Act
Token consideration
Consumer protection
National Institute for Occupational Health
Occupational Safety and Health Act
29. It is an act - forbearance - or the creation - modification - or destruction of a legal relationship
Performance
Pleadings
Economic waste
Duties that cannot be delegated
30. An exemption for transactions involving offerings to employees.
Exchange Act Regulations
10-Q
Undue influence
Section 701 of the Securities Act
31. 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
8-K
Employee Retirement Income Security Act (ERISA)
Prospectus
Section 11 of the Securities Act
32. 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.
Anticipatory repudiation
Restitution
Malpractice
Rules of construction
33. 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
Consumer protection
United States Bankruptcy Code ('Code')
Taking a contract 'out of the Statute of Frauds'
Horizontal agreement
34. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards
Demurrer
Occupational Safety and Health Act
Goods
Truth in Lending Act
35. Treaties entered into between two nations
Statute of limitations
Bilateral treaties
Unemployment compensation laws
Exchange Act Regulations
36. A promise that is inferred from a person's conduct or the circumstances of the transaction
Implied contract
Non-recoverable damages
Rule 144 of the Securities Act
National Environmental Policy Act (NEPA)
37. Congress may prohibit speech that has a 'clear and present' danger of inciting violence or other 'substantive evil'.
38. 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
Contract with intoxicated persons
Employment discrimination
Rules of interpretation of a contract by a court
Federal district court
39. 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
Stare decisis
Intended beneficiaries of government contract
Environmental Protection Agency
Administrative Procedure Act
40. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.
Social Security Act
The Environmental Quality Report
Illusory promise
Scienter
41. Provides retirement and disability benefits to employees as well as benefits to survivors of employees. It created the Social Security Administration
Social Security Act
Reliance
Duties that cannot be delegated
Pre-existing duty
42. 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
Pleadings
Objective standard
Trial court
Short swing profits
43. Agreements among competitors to 'divide the market' by splitting up geographic areas in order eliminate competition in those areas (a horizontal agreement)
Original jurisdiction
Market division
Diminution in value
Condition precedent
44. Seeks to promote market economics and democratic governments
Equal protection
Section 12(a)(2)
Organization for Economic Co-operation and Development (OECD)
Trademark
45. Treaties between two nations addressing investment concerns
Multilateral treaties
Bilateral investment treaties
Truth in Lending Act
Equal protection
46. It regulates chemical substances
Equal Pay Act (EPA)
Toxic Substances Control Act
Superfund
Section 10(b) and Rule 10b-5 of the Exchange Act
47. A contract entered into by a person who is intoxicated (by alcohol or drugs) is also voidable by the intoxicated person. This can be done by proving that he did not understand the nature and significance of her actions - or the other party had reason
Beneficiary's rights
Contract with intoxicated persons
Ordinances
Undue influence
48. Provides for the liquidation of the debtor's assets. A trustee is appointed to oversee this process. This is only available to debtors once ever 8 years
Chapter 7 of the Code
Performance
Prosecution
Rule 505 of Regulation D of the Securities Act
49. It is a transaction pursuant to which one party transfers her rights under a contract to another. The Restatement defines an assignment as the 'manifestation of an intention to transfer a right to a third person.'
Assignment of rights
Mutual rescission
Clayton Act
Misrepresentation
50. It is when a person transfers a duty. A person who delegates his duty under an agreement is initially called the obligor and after the delegation becomes the delegator. The person who assumes the duty is referred to as the delegate - while the other
Original jurisdiction
Substantive unconscionability
Delegation
Specific performance