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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. When a party takes back his repudiation and agrees to perform under the contract. Retraction is not valid if the non-repudiating party has materially changed her position in reliance on teh repudiation - or indicated her willingness to treat the repu
Mortgage
Retraction
Accord
Post-trial motions
2. 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
Process of appealing a case through the three levels of court
Contract with intoxicated persons
Demand assurance
Chapter 13 of the Code
3. One of the primary federal statutes - and it created the Securities and Exchange Commission (SEC).
Criminal Law
Securities Exchange Act of 1934
Enabling acts
Motion of directed verdict or of dismissal
4. Prevents discrimination against employees who are 40years old or more
Age Discrimination in Employment Act (ADEA)
Anticipatory repudiation
Liability based on intentional tort
Diversity jurisdiction
5. If the promisee merely intends to confer a gift - the third party is referred to as a donee beneficiary.
Strict liability
Duty to mitigate
Counteroffer
Donee beneficiary
6. 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.
Exclusive dealing agreement
Common Law
Judgment n.o.v.
'Takings'
7. Actual performance of an obligation
Satisfaction
Non-recoverable damages
Material breach
Indictment
8. Discrimination based on race or sex
Employment discrimination
Gramm-Leach-Bliley Act
Pre-existing duty
Corporate social responsibility
9. It is founded by the National Environmental Policy Act (NEPA) - to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality Report
Tie-in agreement
Uniform Laws
The Council on Environmental Quality
Novation
10. The debtor's right to recover his property by paying the full amount of the debt - as well as any costs incurred by the creditor
Employee-at-will
Non-recoverable damages
Inadequate warning defect`
Equity of redemption
11. Plans in which employers make contributions to an employee's account and upon retirement - the employee receives benefits from the account.
Rules of construction
Complete or total integration
Consumer protection
Defined contribution plan
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
Creditor beneficiary
Nonexpertized portions
Contracts that prohibit assignment
Scienter
13. The defendant's response (admit or deny the allegations within the complaint) to a complaint. This can confirm affirmative defenses or counterclaims.
Environmental Protection Agency (EPA)
Concurrent conflict of interests
Answer
Accord
14. An affirmative misrepresentation - a failure to make statements necessary for other statements not to be misleading - or an omission when there is a duty to disclose.
Partial or trivial breach
'in pari delicto'
Misstatement or omission
Remand
15. Misrepresentation that was made with intent
Penalty
Fraud
Mistake
Trial court
16. An assertion that is not in accord with the facts. A contract becomes voidable when it is shown that a misrepresentation was made - it was material - and the party seeking avoidance reasonably relied on it.
Exclusive dealing agreement
Equal Pay Act (EPA)
Misrepresentation
Scienter
17. Prohibits securities fraud. Liability will be held when misstatement/omission - materiality - connection with a securities transaction - reliance - causation - and damages are proven.
Partial or trivial breach
Section 10(b) and Rule 10b-5 of the Exchange Act
Rule of reason
Precedent
18. The person who assigns her rights
Superfund
Assignee's rights
Obligee
Motion
19. When the product is properly manufactured - but the design poses a danger to consumers. Plaintiff must prove that the manufacturer could have used an alternative design that was still economically feasible
Rule 12b (6) motion
Design defect
Negative causation
Discharge of contract
20. Prohibits abusive and unfair debt collection practices - and imposes penalties on debt collector who engage in such practices
Fair Debt Collection Act
Enabling acts
Oral argument
Per se
21. When a judgement becomes permanent (which occurs when an appellant appeal is denied or the time to bring an appeal has expired). It prevents the parties from re-litigating the same action.
Res judicata
The Statute of Frauds
Trademark
Fair Credit Reporting Act
22. Applies to all employers who engage in interstate commerce. It authorizes the Secretary of Labor to create health and safety standards
Federal Environmental Pesticide Control Act
Occupational Safety and Health Act
Liquidated damages clause
The Environmental Quality Report
23. A relationship of dominance pursuant to which one party has strong influence over another because there exists a fiduciary or other relationship of trust - or a party is weakened states - and the dominant party unfairly persuades the other party to e
Fair Labor Standards Act (FLSA)
Civil liability
Undue influence
Collateral
24. After taking the case to the federal district court - the party has the right to appeal to the federal circuit court of appeals. there are twelve federal appeals courts that hear cases from several different district courts within a specific geograph
Process of appealing a case through the three levels of court
Scienter
Statute of limitations
Nonexpertized portions
25. One party made a mistake - the mistake concerns a basic assumption on which the contract was made that has a material impact on performance - the party seeking to avoid performance has not assumed the risk of the mistake - and equities favor avoidanc
Trial court
Contract law
Unilateral mistake
Unsecured creditor
26. (an exception to Title VII) Discrimination is permitted because of the occupation qualifications
Expropriation
Bona fide occupational qualification
Assignee
The Council on Environmental Quality
27. The rule regards the kind of evidence admissible when a party is explaining an agreement in writing. It excludes written or oral evidence of commitments made prior to the actual written agreement because such evidence is unreliable. Parol evidence is
Expropriation
Workers compensation laws
Criminal Trial
Parol Evidence Rule
28. In order for a court to hear a case - it must have both subject matter jurisdiction and personal jurisdiction.
Jurisdiction
Remand
Unemployment compensation laws
'Mirror image' rule
29. Only one of the party wants to rescind the contract - which requires legal grounds to do so.
Contract law
Private placement
'Infants' or 'minors'
Unilateral rescission
30. 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
Consequentialism
Priority of secured transactions
Administrative Procedure Act
Illusory promise
31. (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)
Design defect
Utilitarianism
Administrative law judges
Performance
32. 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
Verdict
Penalty
Process of assignment
33. 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
Collateral
Express contract
Perfected
Supervening illegality
34. The obligation to establish his claims first
Appellate jurisdiction
Burden of proof
Executed exchange
Americans with Disabilities Act (ADA)
35. The person to whom the right is assigned
Assignee
Export Administration Regulations (EAR)
Remediation
Perfected
36. A condition that must occur before a duty to perform arises
Federal Trade Commission
Comprehensive Environmental Response - Compensation - and Liability Act (CERCLA)
When an assignment becomes void
Condition precedent
37. An exemption for offerings that occur primarily within one state.
Rule 147 of the Securities Act
Unconscionability
Suspect classification
Promisee's rights
38. Regulates trusts and monopolies
Levels of courts
Federal Trade Commission
National Environmental Policy Act (NEPA)
Unsecured creditor
39. A trivial defect in performance (the opposite of material breach).
Restitution
Substantial performance
Suspect classification
Attachment
40. Words or actions an individual may have intended - but did not communicate
Federal Trade Commission
10-Q
Subjective intent
Substitutes of consideration
41. A substantial likelihood that a reasonable investor would consider the statement or omission important in making a decision about a securities transaction
Mental incapacity
Rational basis test
Materiality
Condition precedent
42. A misrepresentation made with knowledge of its inaccuracy
Parol Evidence Rule
Specialized federal courts
Scienter
Implied terms
43. The person being sued
Defendant
Expropriation
Quasi-contract
Original jurisdiction
44. 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.
Duties that cannot be delegated
Statutory Seller
Corporate social responsibility
Unilateral contract
45. A promise that is inferred from a person's conduct or the circumstances of the transaction
Rules of construction
Federal Insurance Contributions Act
Investment contracts
Implied contract
46. 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
Motion
Rational basis test
Appellate jurisdiction
'de nuvo'
47. An order from the court to perform the contract pursuant of its terms. This is only does when the damage remedy is inadequate and the equitable need for such performance outweighs the burden of supervision and harm to the defendant.
Specific performance
'Infants' or 'minors'
Fair Labor Standards Act (FLSA)
Federal district court
48. Provides that securities cannot be offered or sold unless they have registered with the SEC (Securities Exchange Commission).
Section 5 of the Securities Act
Anticipatory repudiation
Assignee's rights
Employment discrimination
49. 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
Adhesion
Prospectus
Pleadings
When an assignment becomes void
50. 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.
Rule 504 of Regulation D of the Securities Act
Attorney/client privilege
Procedural unconscionability
Rational basis test