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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. It represents the defendant's request for a new proceeding to determine if he is being unlawfully deprived of his liberty. It is limited to people in custody. It can only be used after all other methods have been exhausted.






2. 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.






3. 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)






4. If a party is under an immediate duty to perform - the contract must be discharged either by performance or by some excuse for performance






5. It is when a promisee is doing an act one is not legally obligated to do or not doing an act that one has a legal right to do






6. 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.






7. This is when the appellate court send the case back to the lower court for a new trial.






8. Law that enforces promises between parties. It also provides the principles for determining whether a promise is enforceable.






9. 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

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10. Prohibit discrimination based on pregnancy or childbirth






11. When all collections by creditors must stop. This occurs when a bankruptcy proceeding is initiated.






12. These contracts do not actually prohibit assignment - but actually prohibits delegation. Assignments will be valid unless the contract specifically states that assignment are void - which in such a case - any assignment will be treated as a breach of






13. (Model Rules) The American Bar Association's model rules that most states base their own ethical rules for lawyers practicing within their state






14. 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






15. 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)






16. When the plaintiff's damages were caused by something other than the misrepresentation or omission






17. It is a promise stated in words - either oral or written.






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






19. Is the decision by the jury on whether the defendant shoul dbe held liable for the complaint action






20. When both parties agree to rescind the contract






21. The first court to consider an action






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






23. Consent after the lawyer has adequately informed the client about the conflict and not only has explained to her the material risk associated with the conflict but also has made available her reasonable alternatives to the proposed conflict






24. Where social security benefits are funded by taxes levied on both employers and employees. Employers pay half of the benefits and the employers pay the other half.






25. 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.






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






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






28. Motions that can be made by the loosing party after a trial. This includes a motion for a new trial or a motion for a judgment notwithstanding the verdict (judgment n.o.v.).






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






30. The obligation to establish his claims first






31. Agreements that grant an entity an exclusive right to manufacture a product within a given area. The Clayton Act prohibits such agreements. (vertical agreement)






32. Required to establish a security interest. Attachment occurs when the parties agree to create a security interest (security agreement) - put it in writing and signed by the debtor - the creditor provides money or some other form of consideration for






33. 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 -






34. If a performance has already occurred - or a promise has already been made - then it generally cannot serve as the basis for consideration because it cannot be considered to have induced a bargain. Therefore - 'past consideration' is insufficient.

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35. 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.






36. 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






37. An interest in property or collateral granted in order to ensure payment of a debt or obligation






38. Represents a motion to dismiss the case because the plaintiff's complaint does not establish a legal basis for any remedy against the defendant. It can be filed by the defendant.






39. An annual report required by the Exchange Act






40. They represent losses that result from other transactions that are dependent upon the breached contract






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






42. A classification that includes gender and legitimacy. If the regulation involves quasi-suspect classification - then the courts may apply intermediate scrutiny. Thus - the regulation will be valid so long as it is substantially tailored to meet an im






43. It regulates chemical substances






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






45. When the court finds that the terms of the agreement are grossly unfair or unduly favorable to one side - particularly when the term are incomprehensible to a party. A contract becomes voidable






46. When the jury retires to a separate room to decide the outcome of the case.






47. 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






48. When an employer requests a sexual favor in exchange for providing an employee with some employment benefit.

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49. Revocability relates to situations when an assignment can be taken away from the assignee. When an assignment is supported by consideration - it irrevocable - and vice-versa. If an assignment is irrevocable - then the assignor does not have the right






50. It imposes a civil liability on anyone who offers or sells a security in violation of Section 5