WGU D216
WGU D216 Business Law for Accountants
Exam Questions with Verified Answers
Graded A+ 2025-2026
Constitutional law
law that involves the interpretation and application of the U.S. Constitution and
state constitutions
statutory law
Laws enacted by legislative bodies at any level of government
ordinances
A law passed by a local governing unit such as a city or county
uniform laws
A model law developed by the National Conference of Commissioners on Uniform
State Laws for the states to consider enacting into statute.
Administrative Law
consists of the rules, orders, and decisions of administrative agencies
administrative agency
a federal, state, or local government agency established to perform a specific
function.
executive agencies
An administrative agency within the executive branch of government. At the
federal level, executive agencies are those within the cabinet departments.
independent regulatory agencies
An administrative agency that is not considered part of the government's executive
branch and is not subject to the authority of the president. Independent agency
officials cannot be removed without cause.
WGU D216
,WGU D216
Case law
the doctrines and principles announced in cases
What does case law govern?
all areas not covered by statutory law or administrative law and is part of our
common law tradition
common law
The body of law developed from custom or judicial decisions in English and U.S.
courts, not attributable to a legislature.
Remedies
the legal means to enforce a right or redress a wrong
How would the King's courts award compensation?
Land, items of value, or money
What did the courts that awarded money, land, or items of value known as?
Courts of law
What were compensation of land, items of value, and money known as?
Remedies of law
damages
Amounts given to a party whose legal interests have been injured
courts of equity
A court that decides controversies and administers justice according to the rules,
principles, and precedents of equity.
Remedies in equity
A remedy allowed by courts in situations where remedies at law are not
appropriate. Remedies in equity are based on settled rules of fairness, justice, and
honesty, and include injunction, specific performance, rescission and restitution,
and reformation.
WGU D216
,WGU D216
Rescission
the cancellation of a contractual obligation.
Specific Performance
ordering a party to perform an agreement as promised
injunction
an order to a party to cease engaging in a specific activity or to undo some wrong
or injury.
breaches
fails to fulfill
equitable maxims
propositions or general statements of equitable rules
laches
The equitable doctrine that bars a party's right to legal action if the party has
neglected for an unreasonable length of time to act on his or her rights.
defendant
Party being sued
Defense
argument raised by the defense
Plaintiff
The suing party
petitioner
In equity practice, a party that initiates a lawsuit.
respondent
In equity practice, the party who answers a complaint or other proceeding.
statutes of limitations
WGU D216
, WGU D216 t
A federal or state statute setting the maximum time period during which a certain
t t t t t t t t t t t t t
action can be brought or certain rights enforced.
t t t t t t t t
precedent
A court decision that furnishes an example or authority for deciding subsequent
t t t t t t t t t t t
cases involving identical or similar facts.
t t t t t t
reporters
A publication in which court cases are published, or reported.
t t t t t t t t t
aspects of stare decisis
t t t t
A court should not overturn its own precedents unless there is a compelling reason to
t t t t t t t t t t t t t t
do so.
t t
Decisions made by a higher court are binding on lower courts. t t t t t t t t t t
binding authority t
Any source of law that a court must follow when deciding a case.
t t t t t t t t t t t t
stare decisis t
to stand on decided cases.
t t t t
persuasive authorities t
Any legal authority or source of law that a court may look to for guidance but need
t t t t t t t t t t t t t t t t
not follow when making its decision.
t t t t t t
legal reasoning t
(1) The process of evaluating how various laws apply to a given situation. (2) The
t t t t t t t t t t t t t t
process by which a judge harmonizes his or her opinion with the judicial decisions in
t t t t t t t t t t t t t t t
previous cases.
t t
What 4 questions should be asked when practiving legal reasoning
t t t t t t t t t
Issue—What are the key facts and issues? Rule— t t t t t t t
What rule of law applies to the case?
t t t t t t t
WGU D216 t
WGU D216 Business Law for Accountants
Exam Questions with Verified Answers
Graded A+ 2025-2026
Constitutional law
law that involves the interpretation and application of the U.S. Constitution and
state constitutions
statutory law
Laws enacted by legislative bodies at any level of government
ordinances
A law passed by a local governing unit such as a city or county
uniform laws
A model law developed by the National Conference of Commissioners on Uniform
State Laws for the states to consider enacting into statute.
Administrative Law
consists of the rules, orders, and decisions of administrative agencies
administrative agency
a federal, state, or local government agency established to perform a specific
function.
executive agencies
An administrative agency within the executive branch of government. At the
federal level, executive agencies are those within the cabinet departments.
independent regulatory agencies
An administrative agency that is not considered part of the government's executive
branch and is not subject to the authority of the president. Independent agency
officials cannot be removed without cause.
WGU D216
,WGU D216
Case law
the doctrines and principles announced in cases
What does case law govern?
all areas not covered by statutory law or administrative law and is part of our
common law tradition
common law
The body of law developed from custom or judicial decisions in English and U.S.
courts, not attributable to a legislature.
Remedies
the legal means to enforce a right or redress a wrong
How would the King's courts award compensation?
Land, items of value, or money
What did the courts that awarded money, land, or items of value known as?
Courts of law
What were compensation of land, items of value, and money known as?
Remedies of law
damages
Amounts given to a party whose legal interests have been injured
courts of equity
A court that decides controversies and administers justice according to the rules,
principles, and precedents of equity.
Remedies in equity
A remedy allowed by courts in situations where remedies at law are not
appropriate. Remedies in equity are based on settled rules of fairness, justice, and
honesty, and include injunction, specific performance, rescission and restitution,
and reformation.
WGU D216
,WGU D216
Rescission
the cancellation of a contractual obligation.
Specific Performance
ordering a party to perform an agreement as promised
injunction
an order to a party to cease engaging in a specific activity or to undo some wrong
or injury.
breaches
fails to fulfill
equitable maxims
propositions or general statements of equitable rules
laches
The equitable doctrine that bars a party's right to legal action if the party has
neglected for an unreasonable length of time to act on his or her rights.
defendant
Party being sued
Defense
argument raised by the defense
Plaintiff
The suing party
petitioner
In equity practice, a party that initiates a lawsuit.
respondent
In equity practice, the party who answers a complaint or other proceeding.
statutes of limitations
WGU D216
, WGU D216 t
A federal or state statute setting the maximum time period during which a certain
t t t t t t t t t t t t t
action can be brought or certain rights enforced.
t t t t t t t t
precedent
A court decision that furnishes an example or authority for deciding subsequent
t t t t t t t t t t t
cases involving identical or similar facts.
t t t t t t
reporters
A publication in which court cases are published, or reported.
t t t t t t t t t
aspects of stare decisis
t t t t
A court should not overturn its own precedents unless there is a compelling reason to
t t t t t t t t t t t t t t
do so.
t t
Decisions made by a higher court are binding on lower courts. t t t t t t t t t t
binding authority t
Any source of law that a court must follow when deciding a case.
t t t t t t t t t t t t
stare decisis t
to stand on decided cases.
t t t t
persuasive authorities t
Any legal authority or source of law that a court may look to for guidance but need
t t t t t t t t t t t t t t t t
not follow when making its decision.
t t t t t t
legal reasoning t
(1) The process of evaluating how various laws apply to a given situation. (2) The
t t t t t t t t t t t t t t
process by which a judge harmonizes his or her opinion with the judicial decisions in
t t t t t t t t t t t t t t t
previous cases.
t t
What 4 questions should be asked when practiving legal reasoning
t t t t t t t t t
Issue—What are the key facts and issues? Rule— t t t t t t t
What rule of law applies to the case?
t t t t t t t
WGU D216 t
