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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. 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).






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






3. Negative causation - due diligence defense - ...






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






5. An exemption for offerings that occur primarily within one state.






6. Seeks to promote market economics and democratic governments






7. 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






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






9. 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.






10. 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.






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






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 Model Business Corporations Act and the Uniform Partnership Act of 1914 - which was superceded by the Uniform Partnership Act of 1984






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






14. A situation where one person unfairly benefits from a transaction






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

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16. The belief that the corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders. However - laws do not impose this obligation/responsibility






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






18. There is no contract between the employer and employee - and therefore - either the employee or the employer can terminate the employment relationship at any time for any reason.






19. 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.






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






21. 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






22. 1) A trial court - (2) An appeals or appelate court - (3) A supreme court






23. If a person made a contract when he was a minor - once he is of age - he can affirm or disaffirm the contract (making it void or not) within a reasonable time after reaching majority (of age).






24. A federal statute that prohibits trademark infringement and imposes penalties on those who engage in infringing behavior






25. Enacted in Congress since 1963. The Clean Air Act authorizes EPA (Environmental Protection Agency) to determine what constitutes appropriate levels of common air pollutants and set standards (known as the 'National Ambient Air Quality Standards') for






26. Directors - certain officers - and owners






27. 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.






28. A small sign of regard. If something can be construed as token consideration because it lacks any value - then courts will find it legally insufficient.






29. A government's taking of a foreign citizen's business and assets located in its country - generally without proper compensation.






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






31. 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






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






33. When the debtor voluntarily initiates the bankruptcy proceedings






34. 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






35. 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






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






37. It is a reference to the courts' ability to hear cases where the parties are 'diverse' (the opposing parties are citizens from different states or one of the parties is a citizen of a foreign country and the amount in controversy exceeds $75 -000.






38. A promise that is inferred from a person's conduct or the circumstances of the transaction






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






40. The person to whom the right is assigned






41. 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






42. Legally recognized injury






43. Agreements whereby a seller agrees to sell one product to a customer - but only on the condition that the customer purchases another product (vertical agreement)






44. 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






45. The U.S. federal trial court is called the federal district court. There are 94 district courts through the US and territories.






46. The person being sued






47. 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






48. When a product is incorrectly manufactured that is unreasonably dangerous to consumers. To prove that 'unreasonably dangerous' - the show that an ordinary consumer would see it that way (consumer expectation test).






49. An independent federal agency established to promote consumer protection and reduce unfair competition among business.






50. The federal law that governs bankruptcy proceedings - which occur in federal bankruptcy court. A petition must be filed in the court. Bankruptcy helps eliminate or reduce debts. Once a bankruptcy proceeding is initiated - a creditor may not seek to c

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