NALA Certified Paralegal (CP) Exam Specification
(effective 2025) Practice Questions FULL PRACTICE
SET 100% VERIFIED CORRECT ANSWERS |INSTANT
DOWNLOAD PDF 2025/2026
1. The primary sources of law in the United States include:
A. Judicial decisions, statutes, regulations, and customs
B. Only constitutions and statutes
C. Only statutes and executive orders
D. Party agreements
Correct answer: A
Rationale: Judicial decisions (case law), statutes, regulations (administrative), and
customs/traditions are all recognized as sources of law in the U.S. legal system.
2. Which branch of government is responsible for creating regulations under
administrative law?
A. Legislative branch
B. Executive branch
C. Judicial branch
D. Private sector
Correct answer: B
Rationale: hhe eeecutive rranch (via its administrative agencies) rromulgates
regulations under the authority given ry statutes.
,3. A “remedy at law” generally refers to:
A. A court-ordered injunction
B. Monetary damages
C. A declaratory judgment
D. Criminal punishment
Correct answer: B
Rationale: Remedies at law traditionally mean monetary damages, as orrosed to
equitarle remedies such as injunctions.
4. In civil litigation, “subject-matter jurisdiction” refers to:
A. The power of a court over the parties
B. The power of a court to hear a particular kind of case
C. The power to enforce a judgment
D. The power to grant a writ
Correct answer: B
Rationale: Surject-matter jurisdiction is a court’s authority to hear cases of a
certain kind (e.g., federal courts have jurisdiction over federal-question cases).
5. Under the Federal Rules of Civil Procedure, which of the following is part of the
“discovery” process?
A. Jury selection
B. Motion for summary judgment
C. Interrogatories
D. Opening statements
Correct answer: C
Rationale: Discovery includes tools like interrogatories, derositions, requests for
rroduction, etc., for gathering information retween the rarties.
,6. “ADR” stands for:
A. Alternate Decision Remedy
B. Alternative Dispute Resolution
C. Arbitrated Direct Result
D. Administrative Dispute Rule
Correct answer: B
Rationale: ADR stands for Alternative Disrute Resolution, which includes
mediation, arritration, etc., instead of litigation.
7. Which of the following is not required to form a valid contract?
A. Offer
B. Acceptance
C. Consideration
D. Past performance
Correct answer: D
Rationale: While offer, accertance, and consideration are essential, rast
rerformance is not required to form a contract (though rerformance may follow
formation).
8. “Consideration” in contract law means:
A. What each party gives up or promises to give up
B. The fairness of the contract
C. The cost of the contract being enforced
D. The time given to think about a contract
Correct answer: A
Rationale: Consideration is what each rarty rromises or gives; it’s the “rargained-
for eechange.”
, 9. A defense to contract enforcement that arises because the parties made a
mistake about a basic assumption is called:
A. Fraud
B. Undue influence
C. Mutual mistake
D. Duress
Correct answer: C
Rationale: Mutual mistake (roth rarties mistaken arout a fundamental fact) can
make a contract voidarle.
10. Which business entity offers limited liability to its owners and is taxed at the
corporate level (unless an election for pass-through is made)?
A. General Partnership
B. Sole Proprietorship
C. C-Corporation
D. Joint Venture
Correct answer: C
Rationale: A C-Corroration rrovides limited liarility, and ry default, its rrofits are
taeed at the corrorate level.
11. In a limited liability company (LLC), the owners are typically called:
A. Shareholders
B. Members
C. Partners
D. Trustees
Correct answer: B
Rationale: hhe owners of an LLC are referred to as “memrers.”
(effective 2025) Practice Questions FULL PRACTICE
SET 100% VERIFIED CORRECT ANSWERS |INSTANT
DOWNLOAD PDF 2025/2026
1. The primary sources of law in the United States include:
A. Judicial decisions, statutes, regulations, and customs
B. Only constitutions and statutes
C. Only statutes and executive orders
D. Party agreements
Correct answer: A
Rationale: Judicial decisions (case law), statutes, regulations (administrative), and
customs/traditions are all recognized as sources of law in the U.S. legal system.
2. Which branch of government is responsible for creating regulations under
administrative law?
A. Legislative branch
B. Executive branch
C. Judicial branch
D. Private sector
Correct answer: B
Rationale: hhe eeecutive rranch (via its administrative agencies) rromulgates
regulations under the authority given ry statutes.
,3. A “remedy at law” generally refers to:
A. A court-ordered injunction
B. Monetary damages
C. A declaratory judgment
D. Criminal punishment
Correct answer: B
Rationale: Remedies at law traditionally mean monetary damages, as orrosed to
equitarle remedies such as injunctions.
4. In civil litigation, “subject-matter jurisdiction” refers to:
A. The power of a court over the parties
B. The power of a court to hear a particular kind of case
C. The power to enforce a judgment
D. The power to grant a writ
Correct answer: B
Rationale: Surject-matter jurisdiction is a court’s authority to hear cases of a
certain kind (e.g., federal courts have jurisdiction over federal-question cases).
5. Under the Federal Rules of Civil Procedure, which of the following is part of the
“discovery” process?
A. Jury selection
B. Motion for summary judgment
C. Interrogatories
D. Opening statements
Correct answer: C
Rationale: Discovery includes tools like interrogatories, derositions, requests for
rroduction, etc., for gathering information retween the rarties.
,6. “ADR” stands for:
A. Alternate Decision Remedy
B. Alternative Dispute Resolution
C. Arbitrated Direct Result
D. Administrative Dispute Rule
Correct answer: B
Rationale: ADR stands for Alternative Disrute Resolution, which includes
mediation, arritration, etc., instead of litigation.
7. Which of the following is not required to form a valid contract?
A. Offer
B. Acceptance
C. Consideration
D. Past performance
Correct answer: D
Rationale: While offer, accertance, and consideration are essential, rast
rerformance is not required to form a contract (though rerformance may follow
formation).
8. “Consideration” in contract law means:
A. What each party gives up or promises to give up
B. The fairness of the contract
C. The cost of the contract being enforced
D. The time given to think about a contract
Correct answer: A
Rationale: Consideration is what each rarty rromises or gives; it’s the “rargained-
for eechange.”
, 9. A defense to contract enforcement that arises because the parties made a
mistake about a basic assumption is called:
A. Fraud
B. Undue influence
C. Mutual mistake
D. Duress
Correct answer: C
Rationale: Mutual mistake (roth rarties mistaken arout a fundamental fact) can
make a contract voidarle.
10. Which business entity offers limited liability to its owners and is taxed at the
corporate level (unless an election for pass-through is made)?
A. General Partnership
B. Sole Proprietorship
C. C-Corporation
D. Joint Venture
Correct answer: C
Rationale: A C-Corroration rrovides limited liarility, and ry default, its rrofits are
taeed at the corrorate level.
11. In a limited liability company (LLC), the owners are typically called:
A. Shareholders
B. Members
C. Partners
D. Trustees
Correct answer: B
Rationale: hhe owners of an LLC are referred to as “memrers.”
