WGU Business Law for Accountants D216 –
Western Governors University 2025–2026
Complete Exam Questions and Answers
Introduction:
This document contains a comprehensive collection of exam-
style questions and detailed answers for the WGU Business
Law for Accountants (D216) course. It covers key topics
including constitutional law, contracts, agency, business
organizations, intellectual property, consumer protection,
ethics, securities regulation, and bankruptcy, all aligned with
the official D216 assessment for the 2025–2026 academic year.
The material is suitable for thorough exam preparation,
concept review, and last-minute revision.
Exam Questions and Answers:
third party beneficiary ---Correct Answer---One for whose
benefit a promise is made in a contract but who is not a party
to the contract.
,intended beneficiary ---Correct Answer---A third party for
whose benefit a contract is formed; an intended beneficiary
can sue the promisor if such a contract is breached.
incidental beneficiary ---Correct Answer---A third person who
receives a benefit from a contract even though that person's
benefit is not the reason the contract was made.
sales contracts ---Correct Answer---A contract for the sale of
goods under which the ownership of goods is transferred from
a seller to a buyer for a price.
sale ---Correct Answer---The passing of title (evidence of
ownership rights) from a seller to a buyer for a price.
Tangible property ---Correct Answer---Property that has
physical existence and can be distinguished by the senses of
touch, sight, and so on. A car is tangible property.
Intangible property ---Correct Answer---Property that is
incapable of being apprehended by the senses (such as by sight
or touch). Intellectual property is an example of intangible
property.
,predominant-factor test ---Correct Answer---A test that courts
use to determine whether a contract is primarily for the sale of
goods or for the sale of services.
merchant ---Correct Answer---A person who is engaged in the
purchase and sale of goods. Under the Uniform Commercial
Code, a person who deals in goods of the kind involved in the
sales contract; for further definitions, see UCC 2-104.
lease ---Correct Answer---A transfer of the right to possess and
use goods for a period of time in exchange for payment
requirements contract ---Correct Answer---An agreement in
which a buyer agrees to purchase and the seller agrees to sell
all or up to a stated amount of what the buyer needs or
requires.
output contract ---Correct Answer---An agreement in which a
seller agrees to sell and a buyer agrees to buy all or up to a
stated amount of what the seller produces.
, firm offer ---Correct Answer---An offer (by a merchant) that is
irrevocable without consideration for a period of time (not
longer than three months). A firm offer by a merchant must be
in writing and must be signed by the offeror.
seasonably ---Correct Answer---Within a specified time period.
If no period is specified, within a reasonable time.
Identification ---Correct Answer---In a sale of goods, the
express designation of the specific goods provided for in the
contract.
Fungible goods ---Correct Answer---Goods that are alike by
physical nature, by agreement, or by trade usage. Examples
are wheat, oil, and wine that are identical in type and quality.
shipment contract ---Correct Answer---A contract in which the
seller is required to ship the goods by carrier. The buyer
assumes liability for any losses or damage to the goods after
they are delivered to the carrier. Generally, a contract is
assumed to be a shipment contract if nothing to the contrary is
stated in the contract.
Western Governors University 2025–2026
Complete Exam Questions and Answers
Introduction:
This document contains a comprehensive collection of exam-
style questions and detailed answers for the WGU Business
Law for Accountants (D216) course. It covers key topics
including constitutional law, contracts, agency, business
organizations, intellectual property, consumer protection,
ethics, securities regulation, and bankruptcy, all aligned with
the official D216 assessment for the 2025–2026 academic year.
The material is suitable for thorough exam preparation,
concept review, and last-minute revision.
Exam Questions and Answers:
third party beneficiary ---Correct Answer---One for whose
benefit a promise is made in a contract but who is not a party
to the contract.
,intended beneficiary ---Correct Answer---A third party for
whose benefit a contract is formed; an intended beneficiary
can sue the promisor if such a contract is breached.
incidental beneficiary ---Correct Answer---A third person who
receives a benefit from a contract even though that person's
benefit is not the reason the contract was made.
sales contracts ---Correct Answer---A contract for the sale of
goods under which the ownership of goods is transferred from
a seller to a buyer for a price.
sale ---Correct Answer---The passing of title (evidence of
ownership rights) from a seller to a buyer for a price.
Tangible property ---Correct Answer---Property that has
physical existence and can be distinguished by the senses of
touch, sight, and so on. A car is tangible property.
Intangible property ---Correct Answer---Property that is
incapable of being apprehended by the senses (such as by sight
or touch). Intellectual property is an example of intangible
property.
,predominant-factor test ---Correct Answer---A test that courts
use to determine whether a contract is primarily for the sale of
goods or for the sale of services.
merchant ---Correct Answer---A person who is engaged in the
purchase and sale of goods. Under the Uniform Commercial
Code, a person who deals in goods of the kind involved in the
sales contract; for further definitions, see UCC 2-104.
lease ---Correct Answer---A transfer of the right to possess and
use goods for a period of time in exchange for payment
requirements contract ---Correct Answer---An agreement in
which a buyer agrees to purchase and the seller agrees to sell
all or up to a stated amount of what the buyer needs or
requires.
output contract ---Correct Answer---An agreement in which a
seller agrees to sell and a buyer agrees to buy all or up to a
stated amount of what the seller produces.
, firm offer ---Correct Answer---An offer (by a merchant) that is
irrevocable without consideration for a period of time (not
longer than three months). A firm offer by a merchant must be
in writing and must be signed by the offeror.
seasonably ---Correct Answer---Within a specified time period.
If no period is specified, within a reasonable time.
Identification ---Correct Answer---In a sale of goods, the
express designation of the specific goods provided for in the
contract.
Fungible goods ---Correct Answer---Goods that are alike by
physical nature, by agreement, or by trade usage. Examples
are wheat, oil, and wine that are identical in type and quality.
shipment contract ---Correct Answer---A contract in which the
seller is required to ship the goods by carrier. The buyer
assumes liability for any losses or damage to the goods after
they are delivered to the carrier. Generally, a contract is
assumed to be a shipment contract if nothing to the contrary is
stated in the contract.
