Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

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What is a statute of limitations?

Time limit for filing a lawsuit
Time limit for a prosecutor to charge someone
Time limit for a court to hear a case
Time limit for a defendant to respond to a lawsuit

The correct answer is: Time limit for filing a lawsuit

A statute of limitations is a legal term that refers to the fixed time period within which a legal action must be initiated. In other words, it determines the maximum amount of time after an event that a lawsuit can be filed. Option B, C, and D are incorrect because they do not fully encompass the concept of a statute of limitations. Option B only refers to the time limit for a prosecutor, while a statute of limitations applies to both civil and criminal cases. Option C refers to the time limit for a court to hear a case, which is not accurate because a statute of limitations applies before a case is even brought to court. Option D mentions a defendant responding to a lawsuit, but a statute of limitations is relevant before a lawsuit is even filed. Therefore, option A is the most accurate and comprehensive explanation for what a statute of limitations is.