FBLA Business Law questions with verified answers 2026\2027
A+ Grade
acceptance
- correct answer The second party's unqualified willingness to go along with the first party's proposal
accord and satisfaction
- correct answer A legal way to settle contractual disputes by which one party agrees to accept less than
the amount due as full payment
actual authority
- correct answer The real power a principal gives to an agent
actual notice
- correct answer A formal notice given directly to a party, usually using certified mail with a receipt
adhesion contract
- correct answer A take-it-or-leave-it offer made by a party who holds most of the power in a bargaining
session
administrative law
- correct answer The body of rules created by government agencies
adultery
- correct answer When one spouse has sexual relations with someone outside of marriage
affinity
- correct answer Related by marriage
,agency
- correct answer A type of working relationship in which one person represents another person in a
business transaction with a third party
agency by estoppel
- correct answer When the principal's actions lead the third party to believe that the agent is working for
the principal
agent
- correct answer The person who has been authorized to do the work
agent's agent
- correct answer An agent who is appointed by another agent without the principal's authority to do so
alimony
- correct answer An allowance for support paid to one person by the former spouse in a divorce
alternative dispute resolution (ADR)
- correct answer Parties try to resolve disagreements outside of the usual court system, by mediation,
arbitration, conciliation, and negotiation
annual percentage rate (APR)
- correct answer The true interest rate of a loan
annulment
- correct answer A declaration by the court that a marriage was never valid
apparent authority
- correct answer Authority that a third party believes an agent has while acting on behalf of the principal
appellate court
- correct answer The U.S. courts of appeals in the federal system; hears appeals and reviews cases from
the lower courts
, arraignment
- correct answer A formal hearing during which the defendant is read the indictment or information and
is asked to plead guilty or not guilty
arrest
- correct answer Occurs when a person is legally deprived of his or her freedom
articles of incorporation
- correct answer A legal document filed with the state to establish a corporation
assault
- correct answer Attempt to commit a battery
asset acquisition
- correct answer When one corporation agrees to purchase the assets, such as property, buildings, and
equipment, of a second corporation
assignment
- correct answer The transfer of a right under contract
assumption of risk
- correct answer A defense against negligence that is raised when the plaintiff knew of the risk and still
took the chance of being injured
bail
- correct answer Money or other property that is left with the court to assure that a person who has
been arrested, but released, will return to trial
bailment
- correct answer The transfer of possession and control of personal property to another with the intent
that the same property will be returned later
A+ Grade
acceptance
- correct answer The second party's unqualified willingness to go along with the first party's proposal
accord and satisfaction
- correct answer A legal way to settle contractual disputes by which one party agrees to accept less than
the amount due as full payment
actual authority
- correct answer The real power a principal gives to an agent
actual notice
- correct answer A formal notice given directly to a party, usually using certified mail with a receipt
adhesion contract
- correct answer A take-it-or-leave-it offer made by a party who holds most of the power in a bargaining
session
administrative law
- correct answer The body of rules created by government agencies
adultery
- correct answer When one spouse has sexual relations with someone outside of marriage
affinity
- correct answer Related by marriage
,agency
- correct answer A type of working relationship in which one person represents another person in a
business transaction with a third party
agency by estoppel
- correct answer When the principal's actions lead the third party to believe that the agent is working for
the principal
agent
- correct answer The person who has been authorized to do the work
agent's agent
- correct answer An agent who is appointed by another agent without the principal's authority to do so
alimony
- correct answer An allowance for support paid to one person by the former spouse in a divorce
alternative dispute resolution (ADR)
- correct answer Parties try to resolve disagreements outside of the usual court system, by mediation,
arbitration, conciliation, and negotiation
annual percentage rate (APR)
- correct answer The true interest rate of a loan
annulment
- correct answer A declaration by the court that a marriage was never valid
apparent authority
- correct answer Authority that a third party believes an agent has while acting on behalf of the principal
appellate court
- correct answer The U.S. courts of appeals in the federal system; hears appeals and reviews cases from
the lower courts
, arraignment
- correct answer A formal hearing during which the defendant is read the indictment or information and
is asked to plead guilty or not guilty
arrest
- correct answer Occurs when a person is legally deprived of his or her freedom
articles of incorporation
- correct answer A legal document filed with the state to establish a corporation
assault
- correct answer Attempt to commit a battery
asset acquisition
- correct answer When one corporation agrees to purchase the assets, such as property, buildings, and
equipment, of a second corporation
assignment
- correct answer The transfer of a right under contract
assumption of risk
- correct answer A defense against negligence that is raised when the plaintiff knew of the risk and still
took the chance of being injured
bail
- correct answer Money or other property that is left with the court to assure that a person who has
been arrested, but released, will return to trial
bailment
- correct answer The transfer of possession and control of personal property to another with the intent
that the same property will be returned later
