CLEP Business Law Exam 2025 | Full College-Level
Exam with Practice Questions and Correct Solutions
| Official CLEP Format
law
a representation of a set of rules or principles established by government or other controlling
body that members of society must follow and obey
legal system
a system of established laws
civil law (code law)
a legal system which has a single comprehensive code as the core of its law
common law (case law)
judge-made law, whereby judges make decisions on a case-by-case basis, and those decisions
generate a body of rules and principles
precedent
previous decisions that set an example or guide for future cases
stare decisis
the notion that judges must make decisions based on precedent
Congress
the legislative branch of the US
Supreme Court
the highest federal court in the US
judicial review
the doctrine by which a higher court can overturn a decision made by a lower court
checks and balances
the system whereby each branch of the US government has specific power and authority so that
they balance (or check) the power exercised by other branches
Bill of Rights
,the first ten amendments to the US Constitution; meant to protect citizens from government
intrusion
Necessary and Proper Clause
a clause in the US Constitution that gives power to Congress to make laws that are deemed
"necessary" for the upholding of the Constitution
Supremacy Clause
a clause in the US Constitution that establishes that federal law supersedes all state laws
uniform laws
an effort to harmonize all state law by unifying legislation on a given topic
Uniform Commercial Code ("UCC")
an organization that seeks to establish uniform laws for various aspects of commercial law
commercial speech
speech regarding commercial or economic activities
strict scrutiny
a form of judicial review that requires a law to further "a compelling government interest" and
that the law must serve a narrow purpose
Due Process Clause
a clause in the US Constitution that protects a person from being "deprived of life, liberty or
property without due process"
discriminatory laws
laws that differentiate between people
suspect classification
a classification of groups meeting certain criteria suggesting they are the subject of
discrimination
quasi-suspect classification
a suspect classification involves gender and legitimacy
intermediate scrutiny
a test used to determine a law's constitutionality; the law must be substantially tailored to meet
an important government interest
, rational basis test
a test, referring to the lowest levels of scrutiny; requires that laws must be rationally related to a
legitimate government interest
criminal law
law that addresses crimes and punishment of crimes
civil law
law that regulates the relationships between parties
federal district court
the federal trial court in the US
federal circuit court of appeals (federal court of appeals)
the federal appeals court in the US
writ of certiorari
a formal appeals petition to bring a case before the Supreme Court
original jurisdiction
the power of a trials court to hear a case for the first time
appellate jurisdiction
the power of an appeals court to review decisions of a lower court
remand
an action by an appellate court to send a case back to a lower court for a new trial
de novo
a supreme court's power of interpreting legal rules, while not deferring to a lower court
Federal Rules of Civil Procedures ("Federal Rules")
governing procedures for filing a civil suit in federal court
standing
the legal right to bring a suit
injury-in-fact
a legally recognizable injury
Exam with Practice Questions and Correct Solutions
| Official CLEP Format
law
a representation of a set of rules or principles established by government or other controlling
body that members of society must follow and obey
legal system
a system of established laws
civil law (code law)
a legal system which has a single comprehensive code as the core of its law
common law (case law)
judge-made law, whereby judges make decisions on a case-by-case basis, and those decisions
generate a body of rules and principles
precedent
previous decisions that set an example or guide for future cases
stare decisis
the notion that judges must make decisions based on precedent
Congress
the legislative branch of the US
Supreme Court
the highest federal court in the US
judicial review
the doctrine by which a higher court can overturn a decision made by a lower court
checks and balances
the system whereby each branch of the US government has specific power and authority so that
they balance (or check) the power exercised by other branches
Bill of Rights
,the first ten amendments to the US Constitution; meant to protect citizens from government
intrusion
Necessary and Proper Clause
a clause in the US Constitution that gives power to Congress to make laws that are deemed
"necessary" for the upholding of the Constitution
Supremacy Clause
a clause in the US Constitution that establishes that federal law supersedes all state laws
uniform laws
an effort to harmonize all state law by unifying legislation on a given topic
Uniform Commercial Code ("UCC")
an organization that seeks to establish uniform laws for various aspects of commercial law
commercial speech
speech regarding commercial or economic activities
strict scrutiny
a form of judicial review that requires a law to further "a compelling government interest" and
that the law must serve a narrow purpose
Due Process Clause
a clause in the US Constitution that protects a person from being "deprived of life, liberty or
property without due process"
discriminatory laws
laws that differentiate between people
suspect classification
a classification of groups meeting certain criteria suggesting they are the subject of
discrimination
quasi-suspect classification
a suspect classification involves gender and legitimacy
intermediate scrutiny
a test used to determine a law's constitutionality; the law must be substantially tailored to meet
an important government interest
, rational basis test
a test, referring to the lowest levels of scrutiny; requires that laws must be rationally related to a
legitimate government interest
criminal law
law that addresses crimes and punishment of crimes
civil law
law that regulates the relationships between parties
federal district court
the federal trial court in the US
federal circuit court of appeals (federal court of appeals)
the federal appeals court in the US
writ of certiorari
a formal appeals petition to bring a case before the Supreme Court
original jurisdiction
the power of a trials court to hear a case for the first time
appellate jurisdiction
the power of an appeals court to review decisions of a lower court
remand
an action by an appellate court to send a case back to a lower court for a new trial
de novo
a supreme court's power of interpreting legal rules, while not deferring to a lower court
Federal Rules of Civil Procedures ("Federal Rules")
governing procedures for filing a civil suit in federal court
standing
the legal right to bring a suit
injury-in-fact
a legally recognizable injury
