diff --git a/src/tests/libs/alm/BadLayout.cpp b/src/tests/libs/alm/BadLayout.cpp
new file mode 100644
index 0000000000..aed87429c1
--- /dev/null
+++ b/src/tests/libs/alm/BadLayout.cpp
@@ -0,0 +1,96 @@
+/*
+ * Copyright 2007-2008, Christof Lutteroth, lutteroth@cs.auckland.ac.nz
+ * Copyright 2007-2008, James Kim, jkim202@ec.auckland.ac.nz
+ * Copyright 2010, Clemens Zeidler <haiku@clemens-zeidler.de>
+ * Copyright 2012, Haiku, Inc.
+ * Distributed under the terms of the MIT License.
+ */
+
+#include <Alert.h>
+#include <Application.h>
+#include <Button.h>
+#include <Window.h>
+
+#include <stdio.h>
+
+// include this for ALM
+#include "ALMLayout.h"
+
+
+class BAlertPolicy : public BALMLayout::BadLayoutPolicy {
+	virtual bool OnBadLayout(BALMLayout* layout)
+	{
+		BAlert* alert = new BAlert("layout failure", "layout failed!",
+							"sure");
+		alert->Go();
+		return true;
+	}
+};
+
+
+class BadLayoutWindow : public BWindow {
+public:
+	BadLayoutWindow(BRect frame) 
+		:
+		BWindow(frame, "ALM Bad Layout", B_TITLED_WINDOW,
+			B_QUIT_ON_WINDOW_CLOSE)
+	{
+		button1 = new BButton("Bad Layout!");
+
+		// create a new BALMLayout and use  it for this window
+		fLayout = new BALMLayout();
+		SetLayout(fLayout);
+
+		// add an area containing the button
+		// use the borders of the layout as the borders for the area
+		fLayout->AddView(button1, fLayout->Left(), fLayout->Top(),
+			fLayout->Right(), fLayout->Bottom());
+		button1->SetExplicitMinSize(BSize(50, 50));
+		button1->SetExplicitMaxSize(BSize(500, 500));
+		button1->SetExplicitAlignment(BAlignment(B_ALIGN_USE_FULL_WIDTH,
+			B_ALIGN_USE_FULL_HEIGHT));
+
+
+		BButton* button2 = new BButton("can't fit!");
+		fLayout->AddView(button2, fLayout->RightOf(button1), fLayout->Top(),
+			fLayout->Right(), fLayout->Bottom());
+		button2->SetExplicitMinSize(BSize(50, 50));
+
+		fLayout->SetBadLayoutPolicy(new BAlertPolicy());
+		// test size limits
+		BSize min = fLayout->MinSize();
+		BSize max = fLayout->MaxSize();
+		SetSizeLimits(min.Width(), max.Width(), min.Height(), max.Height());
+
+		printf("moving to standard BALMLayout BadLayoutPolicy\n");
+		fLayout->SetBadLayoutPolicy(NULL);
+	}
+	
+private:
+	BALMLayout* fLayout;
+	BButton* button1;
+};
+
+
+class BadLayout : public BApplication {
+public:
+	BadLayout() 
+		:
+		BApplication("application/x-vnd.haiku.BadLayout") 
+	{
+		BRect frameRect;
+		frameRect.Set(100, 100, 300, 300);
+		BadLayoutWindow* window = new BadLayoutWindow(frameRect);
+		window->Show();
+	}
+};
+
+
+int
+main()
+{
+	BadLayout app;
+	app.Run();
+	return 0;
+}
+
diff --git a/src/tests/libs/alm/Jamfile b/src/tests/libs/alm/Jamfile
index 68937e2bca..af90a7f670 100644
--- a/src/tests/libs/alm/Jamfile
+++ b/src/tests/libs/alm/Jamfile
@@ -51,3 +51,10 @@ Application ALMComplexButtons :
 	:
 	be libalm.so $(TARGET_LIBSTDC++)
 ;
+
+
+Application ALMBadLayout :
+	BadLayout.cpp
+	:
+	be liblpsolve55.so libalm.so $(TARGET_LIBSTDC++)
+;