Introductory Business Law CLEP Prep Practice Exam

What is an example of a statute that regulates business?

1. The Fifth Amendment

2. The Uniform Commercial Code

3. The Sarbanes-Oxley Act

4. The Sherman Antitrust Act

The correct answer is: The Uniform Commercial Code

The Fifth Amendment is not a statute, it is an amendment to the United States Constitution that protects individuals from self-incrimination and guarantees due process in legal proceedings. It does not specifically regulate business. The Sarbanes-Oxley Act primarily regulates accounting and securities practices of publicly traded companies, not all businesses in general. The Sherman Antitrust Act is a law that prohibits certain business activities that may restrict competition, but it only applies to companies engaged in interstate commerce. The Uniform Commercial Code (UCC) is a set of laws that govern commercial transactions, such as sales and leases of goods, in the United States. It is an example of a statute that directly regulates business operations and practices.