WGU D216 Business Law for Accountants |OA| Objective Assessment |
200 Actual Questions and Answers Latest Updated
2026 (Graded A+)
Overview
The D216 course is designed to introduce accounting students to the legal environment of
business, emphasizing how law impacts accounting, finance, and business operations. Students
learn to analyze legal issues, apply legal principles, and understand risk and compliance in
accounting.
Key Learning Outcomes
By the end of the course, students should be able to:
1. Understand Sources of Law
o Constitutional law, statutory law, administrative regulations, and common law.
o Civil vs. criminal law distinctions.
o Judicial precedent and case law interpretation.
2. Contracts and Remedies
o Elements of contracts: offer, acceptance, consideration, legality, capacity.
o Types of contracts: bilateral, unilateral, express, implied, void, voidable,
unenforceable.
o Breaches and remedies: damages, specific performance, rescission, novation,
accord and satisfaction.
o UCC rules for sale of goods, merchant transactions, and good faith requirements.
3. Business Entities & Liability
o Sole proprietorships, partnerships, limited partnerships (LP), corporations (C &
S), LLCs, and joint ventures.
o Formation, governance, taxation, and liability protection.
o Piercing the corporate veil, shareholder rights, and dissolution procedures.
4. Agency Law
o Agent-principal relationships, duties, and authority (actual vs. apparent).
o Liability of principal and agent, undisclosed principals, termination of agency.
o Independent contractors vs. agents.
o Fiduciary duties: loyalty, care, obedience, and accounting.
5. Intellectual Property (IP)
o Copyrights: protection of original works, duration, and infringement.
o Patents: utility and design patents, duration, and infringement.
o Trademarks & service marks: brand identity, registration, and protection.
o Trade secrets: confidentiality and reasonable measures to protect.
o First sale doctrine, fair use, and IP enforcement.
, 6. Consumer & Investor Protection
o SEC, FTC, and other regulatory agencies.
o Securities laws: 1933 and 1934 Acts, Sarbanes-Oxley Act.
o Insider trading, prospectus disclosure, whistleblower protections.
o Truth-in-Lending Act and consumer protection requirements.
7. Creditors’ Rights & Bankruptcy
o Secured vs. unsecured creditors, priorities, and UCC Article 9.
o Bankruptcy Chapters 7, 11, and 13.
o Automatic stay, preferential transfers, and fraudulent conveyance.
o Debtor exemptions and reorganization.
8. Ethics & Professional Responsibility
o Accounting ethics: integrity, objectivity, independence, and due care.
o Professional negligence (malpractice) and ethical breaches.
o Corporate social responsibility (CSR) and public trust.
o Conflict of interest, whistleblower protections, and corporate governance.
Exam Focus Areas
The D216 final OA exam emphasizes:
Identifying sources of law and their applications.
Recognizing contract formation issues and remedies.
Understanding business entity structures, liability, and governance.
Applying agency principles and fiduciary duties.
Distinguishing intellectual property protections and enforcement.
Comprehending consumer, investor, and creditor protections.
Evaluating ethical situations and professional responsibilities.
Solving scenario-based questions combining legal and accounting principles.
1–10: Legal Environment & Sources of Law
1. Which of the following is a primary source of law?
A) Ethics codes
B) Judicial decisions
C) Corporate policies
D) Accounting standards
Answer: B
,2. The U.S. Constitution is an example of:
A) Statutory law
B) Administrative law
C) Common law
D) Constitutional law
Answer: D
3. Administrative agencies issue regulations under:
A) Executive orders
B) Statutory authority granted by Congress
C) Judicial precedent
D) Contract law
Answer: B
4. Common law is primarily developed by:
A) Legislatures
B) Courts
C) Agencies
D) Executives
Answer: B
5. Which of the following best describes the role of ethics in business law?
A) Ethics replace statutory law
B) Ethics guide decisions where law is silent
C) Ethics are legally binding
D) Ethics only apply to accountants
Answer: B
6. Civil law deals primarily with:
A) Crimes against society
B) Disputes between private parties
C) Constitutional violations
D) Administrative regulations
Answer: B
7. Criminal law is designed to:
A) Resolve disputes between businesses
B) Punish wrongs against society
C) Protect intellectual property only
D) Enforce contracts
Answer: B
8. Case law is also known as:
A) Statutory law
B) Common law
C) Administrative law
, D) International law
Answer: B
9. Which of the following is an example of statutory law?
A) A court ruling
B) The Civil Rights Act
C) A professional code of ethics
D) A precedent from a previous case
Answer: B
10.Federal law takes precedence over state law due to:
A) The Commerce Clause
B) The Supremacy Clause
C) The Bill of Rights
D) Case law tradition
Answer: B
11–20: Contracts & Remedies
11.Which element is not required for a valid contract?
A) Offer
B) Acceptance
C) Consideration
D) Written form in all cases
Answer: D
12.Consideration in a contract refers to:
A) Legal advice
B) Something of value exchanged
C) Ethical compliance
D) Party consent only
Answer: B
13.A unilateral contract is formed when:
A) Both parties exchange promises
B) One party makes a promise in exchange for performance
C) A court approves the agreement
D) There is no consideration
Answer: B
14.A breach of contract occurs when:
A) A party is late to pay taxes
B) One party fails to perform as agreed
200 Actual Questions and Answers Latest Updated
2026 (Graded A+)
Overview
The D216 course is designed to introduce accounting students to the legal environment of
business, emphasizing how law impacts accounting, finance, and business operations. Students
learn to analyze legal issues, apply legal principles, and understand risk and compliance in
accounting.
Key Learning Outcomes
By the end of the course, students should be able to:
1. Understand Sources of Law
o Constitutional law, statutory law, administrative regulations, and common law.
o Civil vs. criminal law distinctions.
o Judicial precedent and case law interpretation.
2. Contracts and Remedies
o Elements of contracts: offer, acceptance, consideration, legality, capacity.
o Types of contracts: bilateral, unilateral, express, implied, void, voidable,
unenforceable.
o Breaches and remedies: damages, specific performance, rescission, novation,
accord and satisfaction.
o UCC rules for sale of goods, merchant transactions, and good faith requirements.
3. Business Entities & Liability
o Sole proprietorships, partnerships, limited partnerships (LP), corporations (C &
S), LLCs, and joint ventures.
o Formation, governance, taxation, and liability protection.
o Piercing the corporate veil, shareholder rights, and dissolution procedures.
4. Agency Law
o Agent-principal relationships, duties, and authority (actual vs. apparent).
o Liability of principal and agent, undisclosed principals, termination of agency.
o Independent contractors vs. agents.
o Fiduciary duties: loyalty, care, obedience, and accounting.
5. Intellectual Property (IP)
o Copyrights: protection of original works, duration, and infringement.
o Patents: utility and design patents, duration, and infringement.
o Trademarks & service marks: brand identity, registration, and protection.
o Trade secrets: confidentiality and reasonable measures to protect.
o First sale doctrine, fair use, and IP enforcement.
, 6. Consumer & Investor Protection
o SEC, FTC, and other regulatory agencies.
o Securities laws: 1933 and 1934 Acts, Sarbanes-Oxley Act.
o Insider trading, prospectus disclosure, whistleblower protections.
o Truth-in-Lending Act and consumer protection requirements.
7. Creditors’ Rights & Bankruptcy
o Secured vs. unsecured creditors, priorities, and UCC Article 9.
o Bankruptcy Chapters 7, 11, and 13.
o Automatic stay, preferential transfers, and fraudulent conveyance.
o Debtor exemptions and reorganization.
8. Ethics & Professional Responsibility
o Accounting ethics: integrity, objectivity, independence, and due care.
o Professional negligence (malpractice) and ethical breaches.
o Corporate social responsibility (CSR) and public trust.
o Conflict of interest, whistleblower protections, and corporate governance.
Exam Focus Areas
The D216 final OA exam emphasizes:
Identifying sources of law and their applications.
Recognizing contract formation issues and remedies.
Understanding business entity structures, liability, and governance.
Applying agency principles and fiduciary duties.
Distinguishing intellectual property protections and enforcement.
Comprehending consumer, investor, and creditor protections.
Evaluating ethical situations and professional responsibilities.
Solving scenario-based questions combining legal and accounting principles.
1–10: Legal Environment & Sources of Law
1. Which of the following is a primary source of law?
A) Ethics codes
B) Judicial decisions
C) Corporate policies
D) Accounting standards
Answer: B
,2. The U.S. Constitution is an example of:
A) Statutory law
B) Administrative law
C) Common law
D) Constitutional law
Answer: D
3. Administrative agencies issue regulations under:
A) Executive orders
B) Statutory authority granted by Congress
C) Judicial precedent
D) Contract law
Answer: B
4. Common law is primarily developed by:
A) Legislatures
B) Courts
C) Agencies
D) Executives
Answer: B
5. Which of the following best describes the role of ethics in business law?
A) Ethics replace statutory law
B) Ethics guide decisions where law is silent
C) Ethics are legally binding
D) Ethics only apply to accountants
Answer: B
6. Civil law deals primarily with:
A) Crimes against society
B) Disputes between private parties
C) Constitutional violations
D) Administrative regulations
Answer: B
7. Criminal law is designed to:
A) Resolve disputes between businesses
B) Punish wrongs against society
C) Protect intellectual property only
D) Enforce contracts
Answer: B
8. Case law is also known as:
A) Statutory law
B) Common law
C) Administrative law
, D) International law
Answer: B
9. Which of the following is an example of statutory law?
A) A court ruling
B) The Civil Rights Act
C) A professional code of ethics
D) A precedent from a previous case
Answer: B
10.Federal law takes precedence over state law due to:
A) The Commerce Clause
B) The Supremacy Clause
C) The Bill of Rights
D) Case law tradition
Answer: B
11–20: Contracts & Remedies
11.Which element is not required for a valid contract?
A) Offer
B) Acceptance
C) Consideration
D) Written form in all cases
Answer: D
12.Consideration in a contract refers to:
A) Legal advice
B) Something of value exchanged
C) Ethical compliance
D) Party consent only
Answer: B
13.A unilateral contract is formed when:
A) Both parties exchange promises
B) One party makes a promise in exchange for performance
C) A court approves the agreement
D) There is no consideration
Answer: B
14.A breach of contract occurs when:
A) A party is late to pay taxes
B) One party fails to perform as agreed
