$5one-time
- 37-page printable PDF
- 167 terms with examples
- 43 practice questions, answers explained
- 2-page cram sheet and study plans
← CLEP Business Law course
CLEP® Study Guide
Printable PDF · 37 pages
CLEP Business Law Study Guide
Official exam name: Introductory Business Law
Everything the CLEP Business Law exam tests, in one PDF you can print. Built from the College Board's official outline, heaviest topics first.
- 167 key terms, each with an example
- 43 practice questions with every answer explained
- A 2-page cram sheet for the night before
- 2-, 4- and 8-week study plans built from the exam weights
Last updated 2026 · exam details checked against the College Board's published exam information in 2026
Look inside the guide
Real pages from the 37-page PDF.
What you get for $5
One chapter for each official content area, in the order the exam weighs them.
- 📘37pages, printable
- 🧭6chapters, heaviest first
- 🔑167terms with examples
- ✍️43practice questions, answers explained
- ⚠️18exam traps to avoid
- 📄2page cram sheet
Try 10 free Business Law questions
In the style of the real exam, from all 6 areas. About 10 minutes, with every answer explained and a score by area.
10 questions
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Question 1 · Contracts
Kestrel Painting offers to paint Bram's house for $3,000. Bram replies, "I accept if you also paint the garage." Kestrel does not answer. A week later Bram writes, "Forget the garage; I accept your original offer." Is there a contract?
Show the answer
Answer: D. No, because Bram's conditional reply was a counteroffer that ended the offer. Bram's reply added a condition, so it was a counteroffer. A counteroffer rejects the original offer, so nothing remained for Bram to accept a week later.
The trap: The choice saying Bram finally accepted Kestrel's exact terms is tempting, but his conditional reply had already ended that offer.
Bram's reply added a condition, so it was a counteroffer. A counteroffer rejects the original offer, so nothing remained for Bram to accept a week later.
The trap: The choice saying Bram finally accepted Kestrel's exact terms is tempting, but his conditional reply had already ended that offer.
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Question 2 · Legal Environment
A company decides to recall a product that has caused no injuries so far because the manager believes a recall is simply the right thing to do whatever the cost. The manager's reasoning reflects
Show the answer
Answer: E. deontological ethics. Judging the action by duty or rule, regardless of cost or result, is deontological ethics.
The trap: Utilitarian cost-benefit analysis is tempting because the recall helps others, but the manager ignores overall costs and benefits and acts from duty.
Judging the action by duty or rule, regardless of cost or result, is deontological ethics.
The trap: Utilitarian cost-benefit analysis is tempting because the recall helps others, but the manager ignores overall costs and benefits and acts from duty.
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Question 3 · Torts
A grocery clerk mops a floor but puts out no warning sign. A customer who is walking carefully slips on the wet floor and fractures an ankle. Which element of negligence does the clerk's failure to put out a sign most directly supply?
Show the answer
Answer: C. Breach of duty. The store owed customers a duty to act with reasonable care. Failing to warn about a known hazard falls short of that standard, which is a breach.
The trap: Duty of care is tempting because the store did owe one, but the question asks which element the failure to warn supplies, and the failure is the breach, not the duty.
The store owed customers a duty to act with reasonable care. Failing to warn about a known hazard falls short of that standard, which is a breach.
The trap: Duty of care is tempting because the store did owe one, but the question asks which element the failure to warn supplies, and the failure is the breach, not the duty.
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Question 4 · History and Sources of American Law/Constitutional Law
A state passes a law that conflicts with a valid federal statute regulating the same product. Which constitutional provision makes the state law unenforceable?
Show the answer
Answer: A. The Supremacy Clause. Article VI makes valid federal law the supreme law of the land. When a state law conflicts with it, the federal law controls.
The trap: The Commerce Clause is tempting because it gives Congress the power to regulate, but it is the source of the federal power, not the rule that ranks federal law above state law.
Article VI makes valid federal law the supreme law of the land. When a state law conflicts with it, the federal law controls.
The trap: The Commerce Clause is tempting because it gives Congress the power to regulate, but it is the source of the federal power, not the rule that ranks federal law above state law.
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Question 5 · American Legal Systems and Procedures
Marta, a citizen of Georgia, sues a supplier incorporated and headquartered in Florida for $95,000 for breach of a sales contract. No federal law is involved. On what basis may a federal court hear the case?
Show the answer
Answer: B. Diversity jurisdiction. The parties are citizens of different states and more than $75,000 is at stake, which gives federal courts diversity jurisdiction.
The trap: Federal question jurisdiction is wrong because it requires a claim under federal law, and this is an ordinary state-law contract claim.
The parties are citizens of different states and more than $75,000 is at stake, which gives federal courts diversity jurisdiction.
The trap: Federal question jurisdiction is wrong because it requires a claim under federal law, and this is an ordinary state-law contract claim.
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Question 6 · Miscellaneous
A delivery driver for Brightway Foods, while driving a company truck on her assigned route, carelessly hits a pedestrian. The pedestrian sues Brightway Foods. The company is most likely liable under
Show the answer
Answer: A. respondeat superior. An employer is liable for torts an employee commits within the scope of employment. A driver on her assigned route is acting within it.
The trap: Apparent authority is tempting because the driver is an agent, but it deals with an agent's power to bind a principal in contracts, not the employer's liability for torts.
An employer is liable for torts an employee commits within the scope of employment. A driver on her assigned route is acting within it.
The trap: Apparent authority is tempting because the driver is an agent, but it deals with an agent's power to bind a principal in contracts, not the employer's liability for torts.
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Question 7 · Contracts
On Monday, Orla mails a letter accepting Pike's offer to sell his boat. On Tuesday, Pike mails a letter revoking the offer; Orla receives it Wednesday. Pike receives Orla's letter on Thursday. Under the general common-law rule, is there a contract?
Show the answer
Answer: B. Yes, because the acceptance took effect when mailed, before the revocation arrived. Under the mailbox rule, Orla's acceptance was effective Monday when mailed. A revocation is effective only when received, which was too late.
The trap: The choice saying an acceptance counts only when received applies the rule for revocations, not acceptances.
Under the mailbox rule, Orla's acceptance was effective Monday when mailed. A revocation is effective only when received, which was too late.
The trap: The choice saying an acceptance counts only when received applies the rule for revocations, not acceptances.
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Question 8 · Legal Environment
A federal agency set up to regulate aviation safety begins issuing rules for cruise ships. To decide whether the agency has the power to do this, a court will look mainly at the
Show the answer
Answer: E. agency's enabling legislation. An agency has only the powers its enabling legislation gives it. If that statute covers only aviation, rules for cruise ships go beyond the agency's authority.
The trap: The Administrative Procedure Act is tempting because it governs how agencies act and lets courts review them, but it sets procedures for all agencies; the reach of this agency's power comes from the statute that created it.
An agency has only the powers its enabling legislation gives it. If that statute covers only aviation, rules for cruise ships go beyond the agency's authority.
The trap: The Administrative Procedure Act is tempting because it governs how agencies act and lets courts review them, but it sets procedures for all agencies; the reach of this agency's power comes from the statute that created it.
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Question 9 · Torts
A jury finds that a plaintiff suffered $200,000 in damages and was 30% at fault. In a state with pure comparative negligence, the plaintiff recovers
Show the answer
Answer: C. $140,000. Under pure comparative negligence, damages are reduced by the plaintiff's share of fault: 30% of $200,000 is $60,000, and $200,000 minus $60,000 is $140,000.
The trap: Zero is the result under contributory negligence, which bars recovery whenever the plaintiff is at all at fault, but this state uses the comparative rule.
Under pure comparative negligence, damages are reduced by the plaintiff's share of fault: 30% of $200,000 is $60,000, and $200,000 minus $60,000 is $140,000.
The trap: Zero is the result under contributory negligence, which bars recovery whenever the plaintiff is at all at fault, but this state uses the comparative rule.
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Question 10 · History and Sources of American Law/Constitutional Law
A state trial judge thinks an old ruling of the state's highest court on landlords' duties is outdated, but follows it anyway because that court has never overruled it. The judge is applying
Show the answer
Answer: D. stare decisis. Following a higher court's earlier decision on similar facts, even one the judge dislikes, is stare decisis. Lower courts must follow their higher court's precedents until that court overrules them.
The trap: Judicial review is tempting because one court is weighing another court's ruling, but judicial review means testing a law or government action against the Constitution.
Following a higher court's earlier decision on similar facts, even one the judge dislikes, is stare decisis. Lower courts must follow their higher court's precedents until that court overrules them.
The trap: Judicial review is tempting because one court is weighing another court's ruling, but judicial review means testing a law or government action against the Constitution.
The CLEP Business Law exam at a glance
The CLEP Introductory Business Law exam is a 90-minute, computer-based test from the College Board with about 100 multiple-choice questions. A score of 50 on the 20–80 scale earns an ACE credit recommendation of 3 semester hours, though each college sets its own policy. The exam covers 6 content areas; the heaviest is Contracts at 30–40%.
- Questions
- About 100multiple choice
- Time
- 90 minabout 54 seconds a question
- Passing score
- 50on a 20–80 scale
- ACE credit
- 3semester hours
- Exam fee
- $97paid to College Board
- Calculator
- Nonot allowed
What the exam covers
6 areas, heaviest first. The guide's chapters follow this order.
- Contracts30–40%
- Legal Environment20–25%
- Torts10–15%
- History and Sources of American Law/Constitutional Law5–10%
- American Legal Systems and Procedures5–10%
- Miscellaneous5–10%
How it works
- 1Buy once, $5Secure checkout. No subscription needed.
- 2Download the PDFFrom your TransferCredit.org account, right away and any time later.
- 3Study the heaviest areas firstFollow the 2-, 4- or 8-week plan, then read the cram sheet the night before.
Questions students ask
What's in the full CLEP Business Law study guide?
37 pages: 6 chapters, one per official content area, heaviest first. 167 terms, each with a plain-English definition and an example, 2 key people, common traps and memory tricks, 43 practice questions with an answer key that explains every answer, question tactics, 2-, 4- and 8-week study plans and a 2-page cram sheet.
How much is the full CLEP Business Law study guide?
The full 37-page PDF is $5, a one-time payment. The 10 practice questions on this page are free, with no account.
What does the $29 plan include?
$29 a month gives you all 28 CLEP subjects: every CLEP study guide plus the full prep course for each subject, and you can cancel anytime. If you only need this exam, the guide on its own is a one-time $5.
How do I get the full guide?
Choose Buy this guide ($5) and check out. Then sign in to your TransferCredit.org account, then open the course and its Download Your Study Guide lesson. The PDF is yours to keep, and you can download it again from your account at any time.
Can I print the guide or use it on my phone?
Yes. It's a PDF, so it opens on phones, tablets and computers, and printing is allowed. Its tick boxes and answer bubbles work in PDF readers that support forms. Copying and editing are turned off.
Is this an official CLEP study guide?
No. CLEP® is a registered trademark of the College Board, which was not involved in producing this guide and does not endorse it. TransferCredit.org is independent. We built the guide from the official exam outline, and the exam details were checked against the College Board's published exam information in 2026.
Why is this study guide better than a generic review?
It follows the official outline area by area and spends the most pages on what the exam weighs most. Every term comes with an example, each chapter names the traps the exam sets, and the answer key explains why the most tempting wrong answer is wrong, not just which answer is right. It ends with a 2-page cram sheet for the night before.
What is the CLEP Business Law exam?
The CLEP Introductory Business Law exam is a 90-minute, computer-based test from the College Board with about 100 multiple-choice questions. A score of 50 on the 20–80 scale earns an ACE credit recommendation of 3 semester hours, though each college sets its own policy. The exam covers 6 content areas; the heaviest is Contracts at 30–40%.
More questions about the CLEP Business Law exam (22)
How many questions are on the CLEP Business Law exam, and how long is it?
The exam has approximately 100 questions to be answered in 90 minutes. Some of the questions are pretest questions that will not be scored.
What is the passing score for CLEP Business Law?
The passing score is 50 on a 20–80 scale. At 50 or above, the American Council on Education (ACE) recommends 3 semester hours. Each college sets its own passing score and credit award, so check your school's policy before you book.
How much does the CLEP Business Law exam cost?
The exam fee is $97, paid to the College Board. Test centers may add their own administration fee. Eligible U.S. military service members can usually test for free through DANTES.
How many college credits is CLEP Business Law worth?
ACE recommends 3 semester hours for a passing score of 50. Your college decides how many credits it awards and which course they replace. Check your college's policy.
Can I use a calculator on the CLEP Business Law exam?
No. This exam doesn't allow a calculator.
Is there a penalty for guessing on CLEP Business Law?
No. Your score counts only correct answers, so a wrong answer costs nothing. Never leave a question blank: rule out what you can and pick your best guess.
What topics are on the CLEP Business Law exam?
6 content areas, from the official outline: Contracts (30–40%); Legal Environment (20–25%); Torts (10–15%); History and Sources of American Law/Constitutional Law (5–10%); American Legal Systems and Procedures (5–10%); Miscellaneous (5–10%).
Which CLEP Business Law topics should I study first?
Start with the three heaviest: Contracts (30–40%), Legal Environment (20–25%) and Torts (10–15%). Together they are about 70% of the exam, roughly 76 of 100 questions. The guide's chapters run in that order, heaviest first.
Is the CLEP Business Law exam hard?
It depends on what you already know. A few big areas decide most of your score: Contracts alone is 30–40% of the exam, while Miscellaneous is 5–10%. Take the free diagnostic above to see where you stand in about 10 minutes.
What kinds of questions are on the CLEP Business Law exam?
The guide sorts them into 5 types: “Name the rule”, “Apply the rule to a story”, “Pick the right law”, “Calculate the result” and “Which choice does not fit”. Every question has 5 answer choices. Try the 10 free questions above to see the style.
How long should I study for CLEP Business Law?
Use the diagnostic to decide. If you already know most areas, two weeks of daily review is often enough; if the subject is new to you, plan on eight. The full guide has 2-, 4- and 8-week plans built from the exam weights.
How should I pace myself on the CLEP Business Law exam?
On average you have about 54 seconds per question (90 minutes for 100 questions). Be past question 33 a third of the way through and past question 67 two-thirds through. If a question takes more than a minute, pick your best guess, mark it and come back.
What happens if I don't pass CLEP Business Law?
You can retake a CLEP exam after three months. Use the wait to work through the areas the score report and the diagnostic show you missed.
Do colleges accept CLEP Business Law for credit?
CLEP exams are accepted at more than 2,900 U.S. colleges and universities, but each school decides which exams it accepts, the score it requires and the credit it gives. Look up your college's CLEP policy before you book.
How is the guide different from the CLEP Business Law course?
The guide is a 37-page PDF for review and self-testing. The CLEP Business Law course is a full online course with lessons, quizzes and a practice exam, for $19 with lifetime access. Many students use the guide first, then take the course for the areas the diagnostic flags.
How up to date is this CLEP Business Law guide?
Last updated 2026. The exam details were checked against the College Board's published exam information in 2026. Exams change, so confirm the details on the official exam page before you register.
What should I do the night before the exam?
Read the cram sheet once, slowly. Check your test time, the location or remote-proctoring setup, and the ID you need. Then sleep: a rested brain recalls more than a crammed one. In the morning, skim the memory tricks and common traps, then stop studying.
Are CLEP Business Law questions mostly memorization or case problems?
It's a roughly even mix. About 30–35% test basic facts and terms, 30–35% test understanding of concepts and principles, and about 30% ask you to apply the law to specific case problems.
What torts should I know for CLEP Business Law?
Torts are 10–15% of the exam. Know the intentional torts, such as assault, battery, defamation, false imprisonment and fraud; the four elements of negligence (duty, breach, causation and damages); and strict liability, including product liability.
What contract topics are on CLEP Business Law?
Formation, capacity, consideration, joint obligations, third-party beneficiaries, assignment and delegation, the statute of frauds, interpretation, breach and remedies, discharge and illegal contracts.
Does CLEP Business Law cover the UCC?
Yes, in part. Sales of goods fall under the miscellaneous area, and the statute of frauds and contract questions can involve UCC rules for merchants and goods.
Is CLEP Business Law useful for a business degree?
Yes. Most business programs require a business law or legal environment course, and CLEP Introductory Business Law is widely used to satisfy it. Confirm with your program.
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CLEP® is a registered trademark of the College Board, which was not involved in producing this guide and does not endorse it. TransferCredit.org is independent and not affiliated with the College Board. © 2026 UPI Globale Edu Inc.