Introductory Business Law

The Introductory Business Law exam covers contracts, the history and sources of American law, and other topics.

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The Introductory Business Law exam covers material that is usually taught in an introductory one-semester college course in the subject. The exam places not only major emphasis on understanding the functions of contracts in American business law, but it also includes questions on the history and sources of American law, legal systems and procedures, agency and employment, sales, and other topics.

The exam contains approximately 100 questions to be answered in 90 minutes. Some of these are pretest questions that will not be scored.

Knowledge and Skills Required

Questions on the test require candidates to demonstrate one or more of the following abilities in the approximate proportions indicated.

  • Knowledge of the basic facts and terms (about 30%–35% of the exam)
  • Understanding of concepts and principles (about 30%–35% of the exam)
  • Ability to apply knowledge to specific case problems (about 30% of the exam)

The subject matter of the Introductory Business Law exam is drawn from the following topics. The percentages next to the main topics indicate the approximate percentages of exam questions on those topics.

History and Sources of American Law/Constitutional Law (5%–10%)

American Legal Systems and Procedures (5%–10%)

Contracts (30%–40%)

  • Meanings of terms
  • Formation of contracts
  • Capacity
  • Consideration
  • Joint obligations
  • Contracts for the benefit of third parties
  • Assignment/delegation
  • Statute of frauds
  • Scopes and meanings of contracts
  • Breach of contract and remedies
  • Bar to remedies for breach of contract
  • Discharge of contracts
  • Illegal contracts
  • Other

Legal Environment (20%–25%)

  • Ethics
  • Social responsibility of corporations
  • Government regulation/administrative agencies
  • Antitrust law
  • Employment law
  • Product liability
  • Consumer protection
  • International business law

Torts (10%–15%)

Miscellaneous (5%–10%)

  • Agency, partnerships, and corporations
  • Sales

Score Information

ACE Recommendation for Introductory Business Law

Credit-granting Score 50
Semester Hours 3

Note: Each institution reserves the right to set its own credit-granting policy, which may differ from the American Council on Education (ACE). Contact your college to find out the score required for credit and the number of credit hours granted.

Add Study Guides

CLEP Introductory Business Law Examination Guide

The Introductory Business Law exam covers contracts, the history and sources of American law, and other topics.

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Study Resources: Introductory Business Law

A study plan and list of online resources.


ACE Credit Recommendations

Recommendations for credit-granting scores from the American Council on Education.