During the fall of 1979 the University of Texas Department of Government requested that the credit-by-examination program for a basic survey of American government be examined. The course, Government 310L, was developed out of previous policies and earlier validity studies of the College-Level Examination Program (CLEP) tests. The present validity study examined the level of performance of 284 students on the combined CLEP test on political institutions; federal, state and local governments; and the University of Texas, Austin test on state politics and government. The tests were scored separately, then a total score was used in determining final course grades. The validity study analysis and adoption of a decision score for credit used the total scaled scores on the 20-80 scale of CLEP examinations, related to preliminary course grades. Analyses of total scores, expected total scores, performance, decision scores, operation of the placement system, and guidelines for credit indicated that little change in student performance had occurred. (CM)