CLEP Introductory Business Law: Study Guide & Test Prep Final Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What gave congress the right to regulate interstate commerce?

Question 2 2. An agent commits an offense under tort law while acting within the scope of his duties as an employee of the principal. How would a court likely rule on liability for the offense?

Question 3 3. Jane initiates a lawsuit by filing and serving Maxine with a summons and complaint. Maxine responds with a written answer. Which of these actions is a pleading?

Question 4 4. Which of the following is an example of a defendant using the affirmative defense of coercion?

Question 5 5. Drew, a 17 year old college student saw an advertisement for a luxury automobile. He fantasized about it and went to a dealership and made his dreams come true when he purchased one on credit. Drew lost his part time job three months later and stopped making payments. When the dealership sues Drew, how would the court probably rule?

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Question 6 6. Jones owes Jackson $500 but the statute of limitations bars collection of the debt. Later Jones comes into some money and mails Jackson a note promising to repay the debt. Will a majority of courts court rule the note enforceable?

Question 7 7. The Smith family posted flyers all over town offering a $200 reward for the return of a lost pet. Dak a 12 year old boy found the pet wandering around a few days later and returned it to the Smiths since he knew it was theirs. He saw one of the flyers on his way back home and went back to the Smiths the next day for the reward. Are the Smiths legally obligated to pay Dak?

Question 8 8. Joe is late for an appointment and carelessly pushes hard on a revolving door causing injury to an elderly gentleman going the other way. Under what grounds will the elderly gentleman bring suit?

Question 9 9. A small business in Oregon brings suit against a corporation in California alleging $50,000 of damages for breach of contract. Which court will have jurisdiction?

Question 10 10. Which of the following would be a breach of the implied warranty for fitness for a particular purpose?

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Question 11 11. Which of the following is prohibited under the Fair Debt Collection Practices Act?

Question 12 12. Which of the following would be considered a quasi-contract?

Question 13 13. When witnesses are examined, who is allowed to ask questions?

Question 14 14. A corporation is taxed on its profits, and the owners are taxed on the income they receive from the corporation. What does this refer to?

Question 15 15. Maggie hires Monty to be her real estate agent. Monty goes to several open houses and makes a bid on one house. Monty tells the homeowner that he is a real estate agent and that the bid is on behalf of a client, but never mentions that he is working on behalf of Maggie. What is this an example of?

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Question 16 16. Which of the following is an example of a vertical antitrust agreement?

Question 17 17. When a buyer breaches a sales contract, the UCC's Article 2 allows several different seller's remedies. Which of the following is NOT a seller's remedy?

Question 18 18. Why is the World Trade Organization relevant to the global economic system?

Question 19 19. State government would be LEAST likely to have supremacy over federal government in which of the following areas?

Question 20 20. In Talmage v. Smith, the outcome was based on what doctrine?

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Question 21 21. What is one of the ways in which a person can be stripped of his right to liberty under the Fifth Amendment?

Question 22 22. The main federal laws concerning trademark infringement can be found in:

Question 23 23. _____ is the legal responsibility imposed on businesses for the manufacturing or selling of defective goods.

Question 24 24. What types of contracts are covered by a Statute of Frauds?

Question 25 25. Sarah, who is 16, was walking when she saw her friend across the street. To catch up with her, Sarah ran through traffic. A police officer witnessed this and handed Sarah a ticket with a fine. Which of the following is likely to happen?

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Question 26 26. Which of the following are not obligated to the terms of a contract?

Question 27 27. When one party to a contract extends only the benefits of the contract to another party it is called:

Question 28 28. Commentaries on the Laws of England compiled by Sir William Blackstone had a profound and essential effect, as it was one of the primary and guiding documents of the system, on initially establishing _____ .

Question 29 29. Kate and Kevin enter a contract. Kate will provide advertising services for Kevin's kite shop and Kevin will pay Kate $500 once a week. Kate requires that Kevin pay her on Tuesdays. Kevin is sick one week and Kate agrees to let Kevin pay her later that week. Kate is still obligated to provide advertising services for Kevin. This is an example of:

Question 30 30. What is substantive law?

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Question 31 31. Bruno found out that his rich boss was having an affair with his secretary. So, he decided to email his boss to inform him that unless he forks over $1,000,000, he would tell his wife about the affair. Bruno is committing a/an _____.

Question 32 32. What is a breach of contract?

Question 33 33. Paul borrows money from a leasing company in order to buy a truck for his business. In exchange, he gives the lender a legal claim to the truck. This scenario is an example of a:

Question 34 34. Contracts are usually made in an effort to formalize an agreement and to protect the parties in the agreement. A contract will place an obligation on each of the contracting parties. In contract law, what is the definition of obligation?

Question 35 35. Jerome wants to sell his condo. When Manny arrived at Jerome's condo to view it, he fell and hit his head on the fireplace mantle. Lucky for Manny, Jerome is a surgeon and provided medical attention to Manny. When Manny was ready to leave Jerome's condo, Jerome handed him a bill for services rendered. What gives Jerome the right to charge for the medical treatment?

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Question 36 36. The United States Supreme Court accepts very few cases to hear each session. What would have been their reasoning to accept the writ of certiorari filed in the case of Sweatt verses Painter (1950)?

Question 37 37. How many people typically work for a sole proprietorship?

Question 38 38. Pat hires Bob to be a bouncer at his nightclub. A patron starts a fight one night while Bob is working, and Bob tosses the patron out the door. Unfortunately, the patron landed on his head and died. What is the likely legal result?

Question 39 39.

ABC Company issued securities, which John then purchased in a secondary market.

Which of the following is correct?

Question 40 40. Barry builds birdhouses. Barry orders 50 small nails from Bo's hardware store. Bo delivers the nails, but Barry doesn't open the box. Instead, he stores the nails in his garage for later use. When Barry opens the box several weeks later, he discovers the nails are the wrong size. What is the most likely result?

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Question 41 41. Which of the following is NOT an example of a bilateral treaty?

Question 42 42. In which of the following scenarios is the fifth amendment NOT relevant?

Question 43 43. Shari made herself a smoothie for breakfast. Half asleep, she did not realize she put a cup of salt rather than sugar in the blender. She and a co-worker drank it and became ill. Can her co-worker sue her under negligence per se?

Question 44 44. Once enough evidence is provided to a judge about the criminal activity of a suspect, what is issued?

Question 45 45. Jenna wants to sue Jill for patent infringement. Jenna should file her case in:

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Question 46 46. Margie's credit card bill is due on the 30th of each month. She sent her payment on the 25th, but the company posted the payment on the 5th of the following month and charged her a late fee. This is likely a violation of the:

Question 47 47. A statute of frauds is a:

Question 48 48. John is an alcoholic. He recently signed a contract to buy a very expensive home. Prior to signing the contract, he had six or eight cocktails. What is likely to happen with the contract?

Question 49 49. Which of the following is NOT a required element of an enforceable contract?

Question 50 50. I agree to mow Brown's lawn for $25 each week. After three weeks, I hurt my back and am now unable to mow lawns. I ask White to mow my lawns for me. I tell White that he can keep the money he earns. Brown agrees to let White mow his lawn for me. In this scenario, White is the:

CLEP Introductory Business Law: Study Guide & Test Prep Final Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

CLEP Introductory Business Law: Study Guide & Test Prep  /  Business Courses