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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. 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






2. A writ of certiorari is granted by the Supreme Court to a party appeal that they have decided to hear. It requires that four of the nine justice agree to hear the case. The majority of cases appealing to the Supreme Court are denied a writ of certior






3. 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.






4. He is someone who is either the person who directly sold securities to the purchaser - or someone who solicited the purchaser for a financial gain or for the seller's interests. Only a statutory seller is strictly liable for such violation of Section






5. One of the primary federal federal statutes






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






7. (A part of Homeland Security since 2003) Responsible for preventing terrorists and terrorist weapons from entering the US.






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






9. The right of both parties to gain information concerning the other party and her witnesses.






10. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).






11. 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.






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






13. A contract that is made where two promises are outstanding.






14. An exemption for transactions involving offerings to employees.






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






16. This term refers to the notion that the person who brings suit must have a legally recognized injury (injury-in-fact).






17. When the creditor initiates the proceedings.






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






19. Negative causation - due diligence defense - ...






20. This is an agreement where one of the parties does not actually promise to do anything - and thereby - lacks consideration.






21. Agreements requiring a buyer to resell products to a specific manufacturer. The Clayton Act prohibits such agreements (vertical agreement)






22. 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)






23. It is the power to review decisions of the lower court. It limited to reviewing - affirming - revising - or modifying decisions of the lower court. However - in general - they give deference to the lower court's decision. They only decide to 'reverse






24. 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






25. When there is a previous valid contract - agreement by all of the parties to the new contract - an intention to immediately terminate duties under the previous contract - and a new contract that is valid and enforceable.






26. 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






27. Prohibits discrimination against certain employees with mental or physical disabilities. It also requires that employers make reasonable accommodations for employees who qualify as disabled under ADA.






28. A security interest is perfected by filing a financing statement - which describes the collateral and the creditor's security interests in the collateral. This serves as a notice to third parties. Perfection can also occur by taking possession or con






29. 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






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






31. 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.).






32. When a contract is delegated - the obligee must accept the performance of the delegate. Unless the obligee agrees to release him from liability - the delegator remains liable under the contract until the delegate has performed. Once a delegate perfor






33. 1) By lapse of time: When an 'invitation to make an offer' is made but not accepted - the offer will terminate once a reasonable period of time has passed (whether agreed upon time or not) 2) Death of the offeror 3) If the offeror proves to be mental






34. 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

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






36. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.






37. They represent the amount of money a party has spent in justifiable reliance on a contract.






38. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction






39. Actual performance of an obligation






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






41. Negotiations between employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.






42. An exemption for offers in which the aggregate offering price is less than $5 million and the number of purchasers in less than 35 - excluding accredited investors






43. Any party bringing suit must have standing (the legal right to bring the suit). The plaintiff files a complaint with the trial court setting for the basis of his lawsuit. The court must then issue to the defendant a copy of the complaint and a summon






44. 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






45. Section 1 of the Restatement defines it as 'a promise or a set of promises for the breach of which the law gives a remedy - or the performance of which the law in some way recognizes a duty'.






46. The obligee who officially assigned over his rights






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






48. Inadequate warning of danger - which can be construed as a design defect






49. When a person misappropriates information learned in the context of a fiduciary relationship or a relationship of special trust. It is considered as insider trading






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