The SAT is a measure of what you have learned in your grade school education. It shows colleges a general picture of your academic aptitude, although it is in no way a deciding factor of your intelligence.
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SATs are taken as part of a college admissions requirement. Most universities in the US require an SAT or ACT exam score for admissions.
The use of the SAT test is for college admissions to determine your aptitude compared to other applicants to their college. The score you get on the SAT is relative to the score of all other students who took the test.
The LSAT is the Law School Admission Test. If you do not pass this test, you cannot be admitted to a law school approved of by the American Bar Association, so that's why it's important.