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 type of constitutional protection is afforded to contracts entered into between the states?

Supremacy clause
Full faith and credit clause
Commerce clause
Contract clause

The correct answer is: Contract clause

The contract clause of the Constitution provides protection to contracts entered into between the states, ensuring that the terms of the contract are upheld and that one state cannot unilaterally alter or break the agreement. The other options, while important clauses in the Constitution, do not specifically pertain to contracts between states. The supremacy clause establishes that the Constitution and federal laws are the supreme law of the land, and the full faith and credit clause ensures that states acknowledge and give credit to the public acts, records, and judicial proceedings of other states. Similarly, the commerce clause grants the federal government the power to regulate interstate commerce, but does not specifically address contracts between states. Therefore, the best answer is the contract clause.