CLEP® practice test

Free CLEP Introductory Business Law Practice Test (2026)

This is a set of 25 original practice questions that follow the official CLEP Introductory Business Law content outline and its topic weights, each with a short explanation.

  • 25 questions
  • 6 topics from the official outline
  • No timer
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The practice test

25 questions

Question 1 of 25A tenant, her landlord, and a new tenant all agree that the new tenant will take over the lease and that the original tenant is completely released from it. This agreement is
Question 2 of 25A lumber dealer gives a builder a signed, written offer to sell 500 boards at $8 each and promises to keep it open for 30 days. The builder pays nothing for this promise. Ten days later, the dealer tries to revoke the offer. Under the UCC, the offer is
Question 3 of 25When it orders a part for its only oven, a bakery tells the supplier that the bakery cannot operate until the part arrives. The supplier delivers two weeks late without excuse, no other supplier could have provided the part sooner, and the bakery loses $6,000 in profits. Can the bakery recover the lost profits?
Question 4 of 25After losing a jury trial, a company appeals. What will the appellate court generally do?
Question 5 of 25A court has declared a man mentally incompetent and appointed a guardian to handle his affairs. Later, without the guardian, he signs a contract to buy a car. The contract is
Question 6 of 25A company has grown to 70 percent of its market because customers prefer its better and cheaper product. It has never used unfair or exclusionary tactics against rivals. Under Section 2 of the Sherman Act, the company
Question 7 of 25A restaurant owner posts on social media that a rival chef "was arrested for poisoning customers," knowing the claim is false. The rival loses business as a result. The rival's best claim is
Question 8 of 25For years, the owner of a hardware store let her manager sign purchase orders with a lumber supplier, and she paid every bill. She then privately tells the manager not to order more than $5,000 at a time. The manager orders $8,000 of lumber, and the supplier, unaware of the new limit, delivers. Is the owner bound?
Question 9 of 25A store's newspaper ad reads: "Leather sofas, $499 each, this weekend only." A shopper arrives on Saturday and says, "I accept your offer," but the store has sold out. Under the general rule, is there a contract?
Question 10 of 25Before a federal agency adopts a new regulation, it publishes the proposed rule in the Federal Register and invites the public to send written comments. This process is
Question 11 of 25Which of these agreements, if made only orally, would generally be unenforceable under the Statute of Frauds?
Question 12 of 25A private software company fires an employee for posting political opinions on social media. She claims the firing violates her First Amendment right to free speech. Under the US Constitution, her claim will most likely
Question 13 of 25A dealer writes to a contractor: "I am offering you a used forklift for $9,000. If I don't hear from you by Friday, I will assume you accept." The contractor never replies. Is there a contract?
Question 14 of 25During an argument, a store manager angrily shoves a customer, who is not hurt. Can the customer win a claim for battery?
Question 15 of 25A company requires all warehouse workers to be at least 6 feet tall, though height has no link to job performance. The rule screens out far more women than men, and there is no evidence the company meant to discriminate. Under Title VII, this rule is most likely
Question 16 of 25A seller knows her car was badly damaged in a flood but tells a buyer it has never had water damage. Relying on this statement, the buyer purchases the car. What can the buyer generally do?
Question 17 of 25A company based in Ohio contracts to sell machine parts to a company in Germany, and the contract does not say which law applies. Which body of law most likely governs the sale?
Question 18 of 25Before trial, a witness answers the opposing lawyer's questions in person and under oath while a court reporter records every word. This discovery tool is a
Question 19 of 25A collector contracts to buy a rare coin, one of only a few known to exist, and the seller then refuses to deliver it. The collector wants the coin itself, not money. Which remedy is a court most likely to grant?
Question 20 of 25A driver who is texting runs a red light and hits a pedestrian. In the pedestrian's negligence suit, the texting is most relevant to which element?
Question 21 of 25A well-known portrait artist contracts to paint a family's portrait. Later, without asking the family, she tells one of her students to paint it instead. Can she delegate the job this way?
Question 22 of 25A new toaster has a wiring defect from the factory that causes a fire the first time the buyer uses it. She bought it from a retail store that had no way to discover the defect. Under the general rule of strict product liability, whom can she sue?
Question 23 of 25After a neighbor finds and returns Tom's lost dog, Tom promises to pay the neighbor $200 as thanks. He later refuses to pay. Under the general common law rule, can the neighbor enforce the promise?
Question 24 of 25A salesperson comes to a consumer's home and sells her a $900 vacuum cleaner. Under the Federal Trade Commission's Cooling-Off Rule, she may
Question 25 of 25A judge deciding a contract case cites the Restatement (Second) of Contracts. What is the Restatement?

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