A state trial court applies a rule that the state's supreme court announced last year in a similar case. Which doctrine calls for this?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Stare decisis". Outline: College Board, CLEP Introductory Business Law, History and Sources of American Law/Constitutional Law (5%-10%), sources of law
Article I, Section 10 of the Constitution forbids a state to pass any law impairing what?Constitution of the United States, Article I, Section 10, transcription at the National Archives. Outline: College Board, CLEP Introductory Business Law, History and Sources of American Law/Constitutional Law (5%-10%), constitutional law
What is the Uniform Commercial Code?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Uniform Commercial Code". Outline: College Board, CLEP Introductory Business Law, History and Sources of American Law/Constitutional Law (5%-10%), sources of law
What sets common law apart from statutory law?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Common law". Outline: College Board, CLEP Introductory Business Law, History and Sources of American Law/Constitutional Law (5%-10%), sources of law
Which part of the Constitution is the main source of Congress's power to regulate business that crosses state lines?Constitution of the United States, Article I, Section 8, transcription at the National Archives. Outline: College Board, CLEP Introductory Business Law, History and Sources of American Law/Constitutional Law (5%-10%), constitutional law
Show all 60 questions (55 more)
Legal systems and procedures 5
A citizen of Ohio sues a citizen of Texas in federal court on a state-law contract claim. For diversity jurisdiction, the amount in controversy has to exceed what sum?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Diversity jurisdiction". Outline: College Board, CLEP Introductory Business Law, American Legal Systems and Procedures (5%-10%), jurisdiction
Before trial, a witness answers a lawyer's questions under oath in front of a court reporter. What is this step of discovery called?Administrative Office of the U.S. Courts, uscourts.gov, "Civil Cases". Outline: College Board, CLEP Introductory Business Law, American Legal Systems and Procedures (5%-10%), civil procedure
To begin a civil lawsuit in federal court, what does the plaintiff file with the court and serve on the defendant?Administrative Office of the U.S. Courts, uscourts.gov, "Civil Cases". Outline: College Board, CLEP Introductory Business Law, American Legal Systems and Procedures (5%-10%), civil procedure
What must a plaintiff show to win an ordinary civil case?Administrative Office of the U.S. Courts, uscourts.gov, "Civil Cases". Outline: College Board, CLEP Introductory Business Law, American Legal Systems and Procedures (5%-10%), civil procedure
Which statement describes mediation?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Mediation". Outline: College Board, CLEP Introductory Business Law, American Legal Systems and Procedures (5%-10%), alternative dispute resolution
Contracts 22
A 16-year-old signs a contract to buy a used motorcycle. In most states, what is the status of the contract?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Infancy". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), capacity
A buyer and a seller of goods agree to change the delivery date in their existing contract, and neither gives anything new. Under UCC 2-209, is the modification binding?Uniform Commercial Code section 2-209 as the Washington State Legislature publishes it, RCW 62A.2-209, "Modification, rescission and waiver". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), consideration
A city hires a contractor to build a park, and a nearby cafe expects more customers. The contractor never builds it. Can the cafe sue on the contract?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Incidental beneficiary". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), contracts for the benefit of third parties
A contract says only, "Party A assigns this contract to C." Absent other evidence, what does that transfer?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Assignment". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), assignment and delegation
A court orders a homeowner to pay for emergency roof repairs he knowingly accepted, although the two never reached an agreement. What is the basis of the obligation?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Quasi contract (or quasi-contract)". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), meanings of terms
A loan agreement charges interest above the ceiling that state law allows. What is the legal term for such interest?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Usury". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), illegal contracts
A merchant signs a written offer to sell goods and promises to hold it open. Under UCC 2-205 the offer cannot be revoked for lack of consideration, but for no longer than what period?Uniform Commercial Code section 2-205 as the Washington State Legislature publishes it, RCW 62A.2-205, "Firm offers". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), formation of contracts
A painter contracts to restore a particular mural, and a flood destroys the wall before work begins. Which doctrine excuses the painter from performing?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Impossibility". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), discharge of contracts
A retired teacher tells a former student, "I will give you my piano next month," and asks for nothing in return. Why is the promise generally not enforceable as a contract?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Consideration". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), consideration
A sales contract fixes damages for late delivery at a sum far beyond any harm a delay could cause. Under UCC 2-718, how is that term treated?Uniform Commercial Code section 2-718 as the Washington State Legislature publishes it, RCW 62A.2-718, "Liquidation or limitation of damages; deposits". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), breach of contract and remedies
A seller offers a van for $9,000. The buyer replies, "I will pay $8,000." The seller says no, and the buyer then says, "Fine, $9,000." Is there a contract?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Counteroffer". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), formation of contracts
A seller refuses to convey land she contracted to sell, and the court orders her to complete the sale. Which remedy is this?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Specific performance". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), breach of contract and remedies
A signed written lease states the rent as $1,200. The tenant wants to testify that before signing, the landlord orally agreed to $1,000. Which rule generally keeps this testimony out?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Parol evidence rule". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), scopes and meanings of contracts
A tenant breaks a lease. The landlord leaves the apartment empty for a year without trying to rent it again, then sues for the whole year's rent. Which principle limits the recovery?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Duty to mitigate". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), breach of contract and remedies
Dana posts a notice: "I will pay $50 to whoever returns my lost bicycle." What kind of contract does this offer invite?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Unilateral contract". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), meanings of terms
On Monday Lee mails a letter accepting Kim's offer. Kim receives it on Thursday. Under the mailbox rule, when was the offer accepted?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Mailbox rule". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), formation of contracts
Relying on an employer's firm promise of a job, a worker sells her house and moves across the country. The employer then withdraws the promise, and no contract was formed. Which doctrine may still let her recover?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Promissory estoppel". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), consideration
Two defendants are jointly and severally liable on a $20,000 judgment. How much may the plaintiff collect from one of them alone?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Joint and several liability". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), joint obligations
Under UCC 2-201, a contract for the sale of goods needs a signed record to be enforceable once the price reaches what amount?Uniform Commercial Code section 2-201 as the Washington State Legislature publishes it, RCW 62A.2-201, "Formal requirements; statute of frauds". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), statute of frauds
Under UCC 2-725, an action for breach of a contract for the sale of goods must be started within how long after the cause of action accrues?Uniform Commercial Code section 2-725 as the Washington State Legislature publishes it, RCW 62A.2-725, "Statute of limitations in contracts for sale". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), bar to remedies for breach of contract
What is the aim of expectation damages?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Expectation damages". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), breach of contract and remedies
Which oral agreement falls within the statute of frauds and so calls for a signed writing?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Statute of frauds". Outline: College Board, CLEP Introductory Business Law, Contracts (30%-40%), statute of frauds
Legal environment 14
A blender's design calls for a blade guard, but one unit leaves the assembly line without it and injures a buyer. Which kind of product defect is this?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Products liability". Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), product liability
A corporate director learns through her board seat of a property the company wants, and buys it for herself. Which duty has she violated?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Duty of loyalty". Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), ethics
Competing gas stations in one town secretly agree to charge the same price. Which federal statute declares contracts and conspiracies in restraint of trade illegal?United States Code, Title 15, section 1 (Sherman Act, section 1), 2023 edition, U.S. Government Publishing Office. Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), antitrust law
The Foreign Corrupt Practices Act makes it unlawful to do what in order to obtain or retain business?U.S. Department of Justice, Criminal Division, "Foreign Corrupt Practices Act". Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), international business law
Title VII of the Civil Rights Act of 1964 bars employment discrimination because of race, color, religion, sex or which other characteristic?U.S. Equal Employment Opportunity Commission, text of Title VII of the Civil Rights Act of 1964, section 703. Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), employment law
Under the Administrative Procedure Act, where must a federal agency generally publish notice of a proposed rule?United States Code, Title 5, section 553 (Administrative Procedure Act, rule making), 2023 edition, U.S. Government Publishing Office. Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), government regulation and administrative agencies
Under the employment-at-will doctrine, when may an employer end the employment?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Employment-at-will doctrine". Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), employment law
Under the Fair Labor Standards Act, a covered employee who works more than forty hours in a workweek must be paid for the extra hours at no less than what rate?United States Code, Title 29, section 207 (Fair Labor Standards Act, section 7), 2023 edition, U.S. Government Publishing Office. Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), employment law
Under UCC 2-314, a warranty that goods are merchantable is implied in a contract for their sale when the seller is what?Uniform Commercial Code section 2-314 as the Washington State Legislature publishes it, RCW 62A.2-314, "Implied warranty: merchantability; usage of trade". Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), product liability
What does corporate social responsibility refer to?Wikipedia, "Corporate social responsibility". Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), social responsibility of corporations
What does section 5 of the Federal Trade Commission Act declare unlawful, besides unfair methods of competition?United States Code, Title 15, section 45 (Federal Trade Commission Act, section 5), 2023 edition, U.S. Government Publishing Office. Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), consumer protection
What does the United Nations convention known as the CISG govern?United Nations Commission on International Trade Law, "United Nations Convention on Contracts for the International Sale of Goods (Vienna, 1980) (CISG)". Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), international business law
What purpose does Congress state for the Truth in Lending Act?United States Code, Title 15, section 1601 (Truth in Lending Act, findings and purpose), 2023 edition, U.S. Government Publishing Office. Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), consumer protection
Which right does section 7 of the National Labor Relations Act give employees?United States Code, Title 29, section 157 (National Labor Relations Act, section 7), 2023 edition, U.S. Government Publishing Office. Outline: College Board, CLEP Introductory Business Law, Legal Environment (20%-25%), employment law
Torts 8
A customer swings a fist at a clerk, who sees it coming, and misses. Which intentional tort has the customer committed?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Assault". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), intentional torts
A driver runs a red light in violation of a traffic statute and hits a pedestrian. Under negligence per se, what does the violation establish?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Negligence per se". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), negligence
A false statement of fact that harms a supplier's reputation is printed in a trade newsletter. Which form of defamation is this?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Defamation". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), intentional torts
A firm carries on an activity that the law classes as abnormally dangerous and harms a neighbor despite taking every precaution. On what basis may it be held liable?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Strict liability". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), strict liability
A jury finds $100,000 in damages and assigns 30% of the fault to the plaintiff. Under comparative negligence, how much does the plaintiff recover?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Comparative negligence". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), negligence
A repair shop sells a customer's laptop to someone else without permission. Which tort fits?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Conversion". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), intentional torts
A surgical sponge is found inside a patient after an operation, and no one can say how it was left there. Which doctrine lets the patient raise a presumption of negligence from the circumstances?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Res ipsa loquitur". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), negligence
Which standard measures whether a person was negligent?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Negligence". Outline: College Board, CLEP Introductory Business Law, Torts (10%-15%), negligence
Agency, business organizations and sales 6
A buyer orders 100 blue chairs and the seller delivers 100 green ones. Under UCC 2-601, what may the buyer do?Uniform Commercial Code section 2-601 as the Washington State Legislature publishes it, RCW 62A.2-601, "Buyer's rights on improper delivery". Outline: College Board, CLEP Introductory Business Law, Miscellaneous (5%-10%), sales
A delivery driver negligently hits a parked car while making deliveries for her employer. Which doctrine makes the employer liable?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Respondeat superior". Outline: College Board, CLEP Introductory Business Law, Miscellaneous (5%-10%), agency
After finding serious misconduct, a court holds a corporation's sole shareholder personally liable for the corporation's debts. What is this called?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Piercing the corporate veil". Outline: College Board, CLEP Introductory Business Law, Miscellaneous (5%-10%), corporations
For months a store owner lets a clerk order stock from a supplier, then privately forbids it. The supplier, unaware, fills one more order from the clerk. On what basis may the owner be bound?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Apparent authority". Outline: College Board, CLEP Introductory Business Law, Miscellaneous (5%-10%), agency
How does a general partnership treat its partners' liability for the firm's debts?Cornell Law School, Legal Information Institute, Wex legal encyclopedia, "Limited partnership". Outline: College Board, CLEP Introductory Business Law, Miscellaneous (5%-10%), partnerships
Which transaction is a sale of "goods" under Article 2 of the Uniform Commercial Code?Uniform Commercial Code section 2-105 as the Washington State Legislature publishes it, RCW 62A.2-105, "Definitions: "goods"". Outline: College Board, CLEP Introductory Business Law, Miscellaneous (5%-10%), sales
How this list was compiled: Our own questions, written to the College Board's published outline of the CLEP Introductory Business Law exam (https://clep.collegeboard.org/clep-exams/introductory-business-law, read 2026-10-09): History and Sources of American Law/Constitutional Law 5%-10%, American Legal Systems and Procedures 5%-10%, Contracts 30%-40%, Legal Environment 20%-25%, Torts 10%-15%, Miscellaneous (agency, partnerships and corporations; sales) 5%-10%. The bank holds 5, 5, 22, 14, 8 and 6 questions on them. Every rule was read on 2026-10-09 in the public page the question names: the Wex legal encyclopedia of the Legal Information Institute at Cornell Law School (law.cornell.edu/wex); the Uniform Commercial Code as the Washington State Legislature publishes it (RCW Title 62A, app.leg.wa.gov); the United States Code, 2023 edition, at govinfo.gov; the Constitution at the National Archives; uscourts.gov; the Equal Employment Opportunity Commission; the Department of Justice; UNCITRAL; and one Wikipedia article. Licence: Questions, choices and explanations are original work of this site.
How it works
This business law CLEP practice test has 60 questions of our own, weighted like the College Board's Introductory Business Law outline, with contracts the largest part. It is unofficial: not affiliated with, endorsed by or sponsored by the College Board.
Read the full guide
Six topics and their weights
The exam page, read October 9, 2026, lists history and sources of American law with constitutional law (5% to 10%), legal systems and procedures (5% to 10%), contracts (30% to 40%), legal environment (20% to 25%), torts (10% to 15%) and a miscellaneous group of agency, partnerships, corporations and sales (5% to 10%). The bank holds 5, 5, 22, 14, 8 and 6 questions.
Timing
Exam mode gives 54 minutes for 60 questions, the real exam's time per question.
Where the rules come from
Common law rules cite Cornell Law School's Wex encyclopedia. Sales rules cite the Uniform Commercial Code as Washington State publishes it. Federal rules cite the United States Code, the Constitution and uscourts.gov.
About 30% of the real exam applies rules to specific case problems, so read each short case for who promised what to whom.
Under contracts the outline lists formation, capacity, consideration, third-party beneficiaries, assignment, the statute of frauds, breach and remedies, and discharge.
Questions and answers
Is this business law CLEP practice test official?
No. These are our own questions on the topics the exam page lists, and each one cites the statute, code section or encyclopedia entry behind its answer. Nothing was taken from a real exam or an official sample question.
What does the CLEP business law practice test cover?
Mostly contracts, then the legal environment of business (ethics, regulation, antitrust, employment, product liability, consumer protection, international law), torts, courts and procedure, the sources of American law, and agency, partnerships, corporations and sales.
How many questions are on the Introductory Business Law CLEP?
About 100, with 90 minutes to answer them, according to the exam page. Some are pretest questions, which are not counted in the score.
How many credits is the Business Law CLEP worth?
A score of 50, on the 20 to 80 scale, carries an American Council on Education recommendation of 3 semester hours. Your college may set a different score or grant no credit, so ask before registering.