Unit 1 of 5
Study guide for CLEP CLEP Introductory Business Law — Unit 1: The Legal System. Practice questions, key concepts, and exam tips.
275
Practice Questions
15
Flashcards
4
Key Topics
Try these 5 questions from this unit. Sign up for full access to all 275.
What is a design defect in product liability?
Answer: C — A flaw in the product's design that makes it unreasonably dangerous is correct because a design defect refers to a flaw in the product's design that creates an unreasonable risk of harm to consumers.
A US company agrees to arbitrate disputes in London under the New York Convention. What is the likely outcome?
Answer: C — The arbitration will be governed by the law of the contract is correct because the New York Convention typically applies the law of the contract.
Which constitutional principle is based on the idea that power should be divided among the branches of government?
Answer: B — Separation of powers is correct because this principle, as outlined in the Constitution, divides power among the legislative, executive, and judicial branches to prevent any one branch from becoming too powerful.
What is the difference between a counterclaim and a cross-claim?
Answer: B — A counterclaim is filed by a defendant against a plaintiff, while a cross-claim is filed by one defendant against another defendant is correct because it highlights the key difference between the two types of claims.
Which international organization is responsible for promoting free trade and reducing trade barriers?
Answer: C — The World Trade Organization is correct because it is responsible for promoting free trade and reducing trade barriers among its member countries, by negotiating and enforcing trade agreements.
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