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 law governs the relationship between individuals, organizations, and other entities?

Contract Law
Torts Law
Common Law
Criminal Law

The correct answer is: Contract Law

Contract law is the type of law that governs the relationship between individuals, organizations, and other entities. This is because it deals with legally binding agreements between parties and outlines the rights and obligations of each party. Torts law, on the other hand, deals with civil wrongdoings and the compensation of damages to the victim. It does not involve the relationship between parties. Common law refers to the laws created by court decisions rather than by legislation. While it may play a role in the governing of relationships, it does not specifically govern them. Criminal law deals with crimes committed against the state and the punishment of those crimes. It does not pertain to relationships between individuals or organizations.