Introductory Business Law CLEP Prep Practice Exam

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What type of law is in effect in a state legislature?

  1. Common law

  2. Natural law

  3. Administrative law

  4. Statutory law

The correct answer is: Statutory law

Statutory law refers to laws that are created and passed by a governing body, such as a state legislature. This differs from common law, which is based on court decisions and traditions, and natural law, which is based on moral and ethical principles. Administrative law refers to rules and regulations created by government agencies. While all of these types of laws may be relevant in a state legislature, the answer that specifically addresses the type of law that is created within this governing body is statutory law.