FBLA BUSINESS LAW LATEST EXAM 2025 WITH
CORRECT ANSWERS
QUESTIONaccord and satisfaction - answerA legal way to settle contractual disputes
by which one party agrees to accept less than the amount due as full payment
QUESTIONactual authority - answerThe real power a principal gives to an agent
QUESTIONactual notice - answerA formal notice given directly to a party, usually using
certified mail with a receipt
QUESTIONagent - answerThe person who has been authorized to do the work
QUESTIONagent's agent - answerAn agent who is appointed by another agent without
the principal's authority to do so
QUESTIONalimony - answerAn allowance for support paid to one person by the former
spouse in a divorce
QUESTIONalternative dispute resolution (ADR) - answerParties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
QUESTIONannual percentage rate (APR) - answerThe true interest rate of a loan
QUESTIONannulment - answerA declaration by the court that a marriage was never
valid
,QUESTIONapparent authority - answerAuthority that a third party believes an agent
has while acting on behalf of the principal
QUESTIONappellate court - answerThe U.S. courts of appeals in the federal system;
hears appeals and reviews cases from the lower courts
QUESTIONadhesion contract - answerA take-it-or-leave-it offer made by a party who
holds most of the power in a bargaining session
QUESTIONadministrative law - answerThe body of rules created by government
agencies
QUESTIONadultery - answerWhen one spouse has sexual relations with someone
outside of marriage
QUESTIONaffinity - answerRelated by marriage
QUESTIONagency - answerA type of working relationship in which one person
represents another person in a business transaction with a third party
QUESTIONagency by estoppel - answerWhen the principal's actions lead the third party
to believe that the agent is working for the principal
acceptance - answerThe second party's unqualified willingness to go along with the
first party's proposal
QUESTIONarraignment - answerA formal hearing during which the defendant is read
the indictment or information and is asked to plead guilty or not guilty
, QUESTIONarrest - answerOccurs when a person is legally deprived of his or her
freedom
QUESTIONarticles of incorporation - answerA legal document filed with the state to
establish a corporation
QUESTIONassault - answerAttempt to commit a battery
QUESTIONasset acquisition - answerWhen one corporation agrees to purchase the
assets, such as property, buildings, and equipment, of a second corporation
QUESTIONassignment - answerThe transfer of a right under contract
QUESTIONassumption of risk - answerA defense against negligence that is raised
when the plaintiff knew of the risk and still took the chance of being injured
QUESTIONbail - answerMoney or other property that is left with the court to assure
that a person who has been arrested, but released, will return to trial
QUESTIONbailment - answerThe transfer of possession and control of personal
property to another with the intent that the same property will be returned later
QUESTIONbankruptcy - answerThe legal process by which a debtor can make a fresh
start through the sale of assets to pay off creditors
QUESTIONbattery - answerThe unlawful touching of another person
CORRECT ANSWERS
QUESTIONaccord and satisfaction - answerA legal way to settle contractual disputes
by which one party agrees to accept less than the amount due as full payment
QUESTIONactual authority - answerThe real power a principal gives to an agent
QUESTIONactual notice - answerA formal notice given directly to a party, usually using
certified mail with a receipt
QUESTIONagent - answerThe person who has been authorized to do the work
QUESTIONagent's agent - answerAn agent who is appointed by another agent without
the principal's authority to do so
QUESTIONalimony - answerAn allowance for support paid to one person by the former
spouse in a divorce
QUESTIONalternative dispute resolution (ADR) - answerParties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
QUESTIONannual percentage rate (APR) - answerThe true interest rate of a loan
QUESTIONannulment - answerA declaration by the court that a marriage was never
valid
,QUESTIONapparent authority - answerAuthority that a third party believes an agent
has while acting on behalf of the principal
QUESTIONappellate court - answerThe U.S. courts of appeals in the federal system;
hears appeals and reviews cases from the lower courts
QUESTIONadhesion contract - answerA take-it-or-leave-it offer made by a party who
holds most of the power in a bargaining session
QUESTIONadministrative law - answerThe body of rules created by government
agencies
QUESTIONadultery - answerWhen one spouse has sexual relations with someone
outside of marriage
QUESTIONaffinity - answerRelated by marriage
QUESTIONagency - answerA type of working relationship in which one person
represents another person in a business transaction with a third party
QUESTIONagency by estoppel - answerWhen the principal's actions lead the third party
to believe that the agent is working for the principal
acceptance - answerThe second party's unqualified willingness to go along with the
first party's proposal
QUESTIONarraignment - answerA formal hearing during which the defendant is read
the indictment or information and is asked to plead guilty or not guilty
, QUESTIONarrest - answerOccurs when a person is legally deprived of his or her
freedom
QUESTIONarticles of incorporation - answerA legal document filed with the state to
establish a corporation
QUESTIONassault - answerAttempt to commit a battery
QUESTIONasset acquisition - answerWhen one corporation agrees to purchase the
assets, such as property, buildings, and equipment, of a second corporation
QUESTIONassignment - answerThe transfer of a right under contract
QUESTIONassumption of risk - answerA defense against negligence that is raised
when the plaintiff knew of the risk and still took the chance of being injured
QUESTIONbail - answerMoney or other property that is left with the court to assure
that a person who has been arrested, but released, will return to trial
QUESTIONbailment - answerThe transfer of possession and control of personal
property to another with the intent that the same property will be returned later
QUESTIONbankruptcy - answerThe legal process by which a debtor can make a fresh
start through the sale of assets to pay off creditors
QUESTIONbattery - answerThe unlawful touching of another person
