Introductory Business Law CLEP Prep Practice Exam

In the absence of a clear binding contract, which of the following is likely to prevail?

1. UCC

2. Federal Law

3. The Promisor

4. Summary Judgement

The correct answer is: Federal Law

In the absence of a clear binding contract, it is likely that federal law would prevail. This is because federal law is the highest form of law in the United States and takes precedence over state laws or the Uniform Commercial Code (UCC). The UCC is a set of laws that govern commercial transactions and is only applicable if a clear binding contract is present. The promisor refers to the party making a promise and summary judgement is a legal procedure that allows for a speedy resolution of a case without going to trial. Therefore, in the absence of a clear binding contract, neither the promisor nor summary judgement would be relevant.