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 the primary source of contract law in the U.S.?

Common law
Constitutional law
Statutory law
Civil law

The correct answer is: Common law

Contract law is primarily derived from common law in the United States. This means that it is based on legal principles and decisions made by judges in court cases, rather than laws created by legislative bodies like Congress. Constitutional law (B) is concerned with the interpretation and application of the U.S. Constitution, not contract law specifically. Statutory law (C) refers to any laws passed by Congress or state legislatures, but only a small portion of contract law is created through statutes. Civil law (D) is a legal system used in many countries around the world, but it is not the primary source of contract law in the U.S.