Introductory Business Law CLEP Prep Practice Exam

What is an example of a statute of limitations?

1. A time limit in which you must file a lawsuit

2. A time limit in which you must pay a debt

3. A time limit in which a company must deliver a product

4. A time limit in which an employer must issue wages

The correct answer is: A time limit in which you must file a lawsuit

An example of a statute of limitations is a time limit in which you must file a lawsuit. This means that after a certain period of time has passed, the plaintiff can no longer bring a case to court. Options B, C, and D are incorrect because they pertain to different time limits for different types of actions. Option B refers to the time limit for paying a debt, which is typically determined by the terms of a contract or agreement. Option C refers to the time limit for a company to deliver a product, which is usually described in a contract or terms of service. Option D refers to the time limit for an employer to issue wages, which is determined by labor laws and employment contracts. None of these examples specifically pertain to the concept of a statute of limitations, which is a specific legal term for the time limit to bring a lawsuit. Therefore, option A is the correct