Introductory Business Law CLEP Prep Practice Exam

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Prepare for the Introductory Business Law CLEP Exam with our comprehensive quiz, designed to cover essential legal concepts and practices. Study effectively and boost your chances of success!

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Which of the following is a source of law?

  1. Administrative agency rule

  2. Judicial precedent

  3. Opinion of non-attorney

  4. State legislature

The correct answer is: Administrative agency rule

An administrative agency rule is a law that is created by a government agency with the authority to interpret and implement laws in a specific area. This makes it a direct source of law. Judicial precedent, or the principle of following previous court decisions, is also a source of law, but it is not listed as a choice here. The opinion of a non-attorney would not be considered a source of law, as it does not hold any legal weight. Similarly, while a state legislature has the power to create laws, it is not a source of law in and of itself. Therefore, the other options are incorrect because they are not direct sources of law.

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