FBLA Business Law Practice Test Review questions with correct
solutions A+ Grade 2026\2027
Which of the following is the law that has been adopted to regulate the kinds of activities businesses can
now conduct online?
A) Common Law
B) Computer Law
C) Cyberlaw
D) Statutory Law
- correct answer C) Cyberlaw
Cyberlaw is relating to internet and computer offenses, especially fraud or copyright infringement.
Laws making the sale of goods and the extension of credit more favorable to consumers are regulated
by _____.
A) Federal Credit Act
B) Consumer Fraud Act
C) Tax Protection Act
D) Federal Trade Commission Act
- correct answer D) Federal Trade Commission Act
The Federal Trade Commission Act empowers the agency to investigate and prevent unfair methods of
competition, and unfair or deceptive acts or practices affecting commerce.
When Todd's father dies, his mother gives their lakefront property to Todd as a birthday gift. In this
transaction, Todd's mother is a ____.
A) warrantee
B) grantor
C) conveyee
,D) grantee
- correct answer B) grantor
A grantor is someone who gives (grants) something to someone to borrow or to keep.
The document that sets forth the framework of a government and its relationship to the people it
governs is ____.
A) an ordinance
B) a constitution
C) the Uniform Commercial Code
D) the Bill of Rights
- correct answer B) a constitution
A constitution is the basic principles and laws of a nation, state, or social group that determine the
powers and duties of the government and guarantee certain rights to the people in it.
Caveat emptor means ____ when conducting business transactions.
A) the buyer is not liable
B) the buyer is not responsible
C) the buyer should be aware
D) the buyer is liable
- correct answer C) the buyer should be aware.
Caveat emptor directly translates to "let the buyer beware". Caveat emptor is the principle that the
buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.
Appellate courts examine the ____ of the previous court to determine what went on at trial.
A) transcript
B) lawsuit
C) appellate briefs
,D) discovery documents
- correct answer A) transcript
TRANSCRIPTS in court is the certified record of all proceedings that transpired during the trial court.
APPELLATE COURTS review the procedures and the decisions in the trial court to make sure that the
proceedings were fair and that the proper law was applied correctly.
DISCOVERY DOCUMENTS include information about the witnesses and evidence to be presented at trial.
This is before the trial even happens.
APPELLATE BRIEFS are written arguments by counsel on why the trial court acted correctly (appellee's
brief) or incorrectly (appellant's brief). This happens during the Appellate court.
Which of the following is not an advantage of the LLC(Limited Liability Company)?
A) no limitation on the number of members
B) taxes associated with transferring assets
C) no limitation as to whom or what can be a stockholder
D) members are allowed to participate in management
- correct answer B) taxes associated with transferring assets
A transfer tax is charged by a state or local government to complete a sale of property from one owner
to another. This is not an advantage because it is a tax.
A word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one
party from those of others is called a ____.
A) copyright
B) trademark
C) contract
D) patent
- correct answer B) trademark
Trademarks can protect the use of a company's name and its product names, brand identity (like logos),
and slogans. Copyrights primarily protect the rights of people who create literary, dramatic, musical,
artistic, and certain other original works (like history tests, and software code).
, Copyright protects the work of an author ____.
A) for his or her lifetime plus 70 years.
B) for his or her lifetime
C) for fifty years
D) for twenty years
- correct answer A) for his or her lifetime plus 70 years.
As a general rule, for works created after January 1, 1978, copyright protection lasts for the life of the
author plus an additional 70 years.
Courts that administer wills and estates are called ____.
A) federal district courts
B) estate courts
C) probate courts
D) family courts
- correct answer C) probate courts
PROBATE COURT ensures that a will is executed according to the wishes of the individual who has
passed away. This can involve matters involving estates as well.
FEDERAL DISTRICT COURTS resolve disputes by determining the facts and applying legal principles to
decide who is right.
Which one of the following statements regarding a corporation is false?
A) It attracts superior workers because it offers more generous salaries
B) Its existence is distinct and separate from the persons who organize, own, and operate it
C) Stockholders have limited liability
D) They can attract large sums of capital due to increased investor liability
- correct answer D) They can attract large sums of capital due to increased investor liability
solutions A+ Grade 2026\2027
Which of the following is the law that has been adopted to regulate the kinds of activities businesses can
now conduct online?
A) Common Law
B) Computer Law
C) Cyberlaw
D) Statutory Law
- correct answer C) Cyberlaw
Cyberlaw is relating to internet and computer offenses, especially fraud or copyright infringement.
Laws making the sale of goods and the extension of credit more favorable to consumers are regulated
by _____.
A) Federal Credit Act
B) Consumer Fraud Act
C) Tax Protection Act
D) Federal Trade Commission Act
- correct answer D) Federal Trade Commission Act
The Federal Trade Commission Act empowers the agency to investigate and prevent unfair methods of
competition, and unfair or deceptive acts or practices affecting commerce.
When Todd's father dies, his mother gives their lakefront property to Todd as a birthday gift. In this
transaction, Todd's mother is a ____.
A) warrantee
B) grantor
C) conveyee
,D) grantee
- correct answer B) grantor
A grantor is someone who gives (grants) something to someone to borrow or to keep.
The document that sets forth the framework of a government and its relationship to the people it
governs is ____.
A) an ordinance
B) a constitution
C) the Uniform Commercial Code
D) the Bill of Rights
- correct answer B) a constitution
A constitution is the basic principles and laws of a nation, state, or social group that determine the
powers and duties of the government and guarantee certain rights to the people in it.
Caveat emptor means ____ when conducting business transactions.
A) the buyer is not liable
B) the buyer is not responsible
C) the buyer should be aware
D) the buyer is liable
- correct answer C) the buyer should be aware.
Caveat emptor directly translates to "let the buyer beware". Caveat emptor is the principle that the
buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.
Appellate courts examine the ____ of the previous court to determine what went on at trial.
A) transcript
B) lawsuit
C) appellate briefs
,D) discovery documents
- correct answer A) transcript
TRANSCRIPTS in court is the certified record of all proceedings that transpired during the trial court.
APPELLATE COURTS review the procedures and the decisions in the trial court to make sure that the
proceedings were fair and that the proper law was applied correctly.
DISCOVERY DOCUMENTS include information about the witnesses and evidence to be presented at trial.
This is before the trial even happens.
APPELLATE BRIEFS are written arguments by counsel on why the trial court acted correctly (appellee's
brief) or incorrectly (appellant's brief). This happens during the Appellate court.
Which of the following is not an advantage of the LLC(Limited Liability Company)?
A) no limitation on the number of members
B) taxes associated with transferring assets
C) no limitation as to whom or what can be a stockholder
D) members are allowed to participate in management
- correct answer B) taxes associated with transferring assets
A transfer tax is charged by a state or local government to complete a sale of property from one owner
to another. This is not an advantage because it is a tax.
A word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one
party from those of others is called a ____.
A) copyright
B) trademark
C) contract
D) patent
- correct answer B) trademark
Trademarks can protect the use of a company's name and its product names, brand identity (like logos),
and slogans. Copyrights primarily protect the rights of people who create literary, dramatic, musical,
artistic, and certain other original works (like history tests, and software code).
, Copyright protects the work of an author ____.
A) for his or her lifetime plus 70 years.
B) for his or her lifetime
C) for fifty years
D) for twenty years
- correct answer A) for his or her lifetime plus 70 years.
As a general rule, for works created after January 1, 1978, copyright protection lasts for the life of the
author plus an additional 70 years.
Courts that administer wills and estates are called ____.
A) federal district courts
B) estate courts
C) probate courts
D) family courts
- correct answer C) probate courts
PROBATE COURT ensures that a will is executed according to the wishes of the individual who has
passed away. This can involve matters involving estates as well.
FEDERAL DISTRICT COURTS resolve disputes by determining the facts and applying legal principles to
decide who is right.
Which one of the following statements regarding a corporation is false?
A) It attracts superior workers because it offers more generous salaries
B) Its existence is distinct and separate from the persons who organize, own, and operate it
C) Stockholders have limited liability
D) They can attract large sums of capital due to increased investor liability
- correct answer D) They can attract large sums of capital due to increased investor liability
