fbla business law study guide questions and answers
questions and answers A+ Grade 2026\2027
cooperative
- correct answer A business organization owned and operated by a group of individuals for their mutual
benefit
nominal consideration
- correct answer small amount of money identified in a written contract when parties cannot or do not
wish to state the amount precisely
restraint
- correct answer A human, mechanical, and or physical device that is used with or without the client's
permission to restrict his or her freedom of movement or normal access to a person's body and is not a
usual part of treatment plans indicated by the person's condition or symptoms.
disaffirmance
- correct answer The legal avoidance, or setting aside, of a contractual obligation.
commercial paper
- correct answer A short-term unsecured debt instrument used by corporations to borrow money at
rates lower than bank rates. CP has maturities from 2 - 270 days; unregulated by the SEC.
Migrant & Seasonal Agricultural Workers
- correct answer The Migrant and Seasonal Agricultural Worker Protection Act (MSPA) regulates the
hiring and employment activities of agricultural employers, farm labor contractors, and associations
using migrant and seasonal agricultural workers. The Act prescribes wage protections, housing and
transportation safety standards, farm labor contractor registration requirements, and disclosure
requirements. The Wage and Hour Division administers this law.
The Fair Labor Standards Act (FLSA) exempts agricultural workers from overtime premium pay, but
requires the payment of the minimum wage to workers employed on larger farms (farms employing
more than approximately seven full-time workers. The Act has special child-labor regulations that apply
,to agricultural employment; children under 16 are forbidden to work during school hours and in certain
jobs deemed too dangerous. Children employed on their families' farms are exempt from these
regulations. The Wage and Hour Division administers this law. OSHA also has special safety and health
standards that may apply to agricultural operations.
The Immigration and Nationality Act (INA) requires employers who want to use foreign temporary
workers on H-2A visas to get a labor certificate from the Employment and Training Administration
certifying that there are not sufficient, able, willing and qualified U.S. workers available to do the work.
The labor standards protections of the H-2A program are enforced by The Wage and Hour Division.
Reasons for Termination
- correct answer 1)
Consistent incompetence. If an employee just isn't able to do a competent job, and you have given the
employee a reasonable opportunity to succeed, then termination will often be seen as appropriate.
2)
Violation of company policy. If you have established clear, legal, and consistent policies, and the
employee obviously has violated them in a meaningful way, then termination is appropriate. Violation of
antiharassment, discrimination, or confidentiality policies are particularly actionable.
3)
Repeated unexcused absenteeism or tardiness. Your company depends on its employees to show up for
work and perform their jobs. Continual absence or tardiness jeopardizes the ability of an employee to
complete important tasks. If absenteeism or tardiness is continual and unexcused, then termination may
be justified. Be careful to investigate the reason for the absences. If they're the result of a medical
condition, you may need to accommodate that condition, or at least attempt to do so.
4)
Physical violence. If an employee commits or threatens physical violence, you will want to fire him or her
immediately. All employees are entitled to a safe work environment, and employers have a duty to take
reasonable steps to provide for that.
5)
Drugs and alcohol. Depending on the circumstances, being under the influence at the office may be
grounds for immediate suspension or termination. Some companies now offer treatment and
rehabilitation counseling as an alternative to immediate firing. Conditions caused by the use of
prescribed drugs may also require a more tempered response.
6)
, Illegal acts. If you find the employee committing illegal acts, such as theft or embezzlement, immediate
termination is justified. Before you fire the accused employee, however, make sure you know all the
facts and have heard the employee's side of the stor
Product Organizational Structure
- correct answer Product Organizational Structure
A product organizational structure has managers reporting to the president or head of the company by
product type. Product organizational structures are primarily used by retail companies that have stores
in various cities. However, stores in each city may still need a local human resources or marketing
department to carry out functions locally. For example, a small department store company may have a
vice president of sporting goods, housewares and general merchandise at the corporate office. One
manager may report to each vice president. However, each manager may oversee the work of one or
more field marketing employees who travel and handle local marketing stores in several states. These
field marketing employees may work for the sporting goods manager one week in League City, Texas,
then do merchandising for the housewares manager another week in the Sugarland, Texas, market.
Contract Steps
- correct answer 1 Intent
2 Offer
3 Timeframe
4 Obligations
5 Representations
6 Consideration
7 Arbitration
8 Acceptance
Assignment
- correct answer An assignment (Latin cessio) is a term used with similar meanings in the law of
contracts and in the law of real estate. In both instances, it encompasses the transfer of rights held by
one party—the assignor—to another party—the assignee.[1] The details of the assignment determines
some additional rights and liabilities (or duties).
Mistake
- correct answer A mistake is an incorrect understanding by one or more parties to a contract and may
questions and answers A+ Grade 2026\2027
cooperative
- correct answer A business organization owned and operated by a group of individuals for their mutual
benefit
nominal consideration
- correct answer small amount of money identified in a written contract when parties cannot or do not
wish to state the amount precisely
restraint
- correct answer A human, mechanical, and or physical device that is used with or without the client's
permission to restrict his or her freedom of movement or normal access to a person's body and is not a
usual part of treatment plans indicated by the person's condition or symptoms.
disaffirmance
- correct answer The legal avoidance, or setting aside, of a contractual obligation.
commercial paper
- correct answer A short-term unsecured debt instrument used by corporations to borrow money at
rates lower than bank rates. CP has maturities from 2 - 270 days; unregulated by the SEC.
Migrant & Seasonal Agricultural Workers
- correct answer The Migrant and Seasonal Agricultural Worker Protection Act (MSPA) regulates the
hiring and employment activities of agricultural employers, farm labor contractors, and associations
using migrant and seasonal agricultural workers. The Act prescribes wage protections, housing and
transportation safety standards, farm labor contractor registration requirements, and disclosure
requirements. The Wage and Hour Division administers this law.
The Fair Labor Standards Act (FLSA) exempts agricultural workers from overtime premium pay, but
requires the payment of the minimum wage to workers employed on larger farms (farms employing
more than approximately seven full-time workers. The Act has special child-labor regulations that apply
,to agricultural employment; children under 16 are forbidden to work during school hours and in certain
jobs deemed too dangerous. Children employed on their families' farms are exempt from these
regulations. The Wage and Hour Division administers this law. OSHA also has special safety and health
standards that may apply to agricultural operations.
The Immigration and Nationality Act (INA) requires employers who want to use foreign temporary
workers on H-2A visas to get a labor certificate from the Employment and Training Administration
certifying that there are not sufficient, able, willing and qualified U.S. workers available to do the work.
The labor standards protections of the H-2A program are enforced by The Wage and Hour Division.
Reasons for Termination
- correct answer 1)
Consistent incompetence. If an employee just isn't able to do a competent job, and you have given the
employee a reasonable opportunity to succeed, then termination will often be seen as appropriate.
2)
Violation of company policy. If you have established clear, legal, and consistent policies, and the
employee obviously has violated them in a meaningful way, then termination is appropriate. Violation of
antiharassment, discrimination, or confidentiality policies are particularly actionable.
3)
Repeated unexcused absenteeism or tardiness. Your company depends on its employees to show up for
work and perform their jobs. Continual absence or tardiness jeopardizes the ability of an employee to
complete important tasks. If absenteeism or tardiness is continual and unexcused, then termination may
be justified. Be careful to investigate the reason for the absences. If they're the result of a medical
condition, you may need to accommodate that condition, or at least attempt to do so.
4)
Physical violence. If an employee commits or threatens physical violence, you will want to fire him or her
immediately. All employees are entitled to a safe work environment, and employers have a duty to take
reasonable steps to provide for that.
5)
Drugs and alcohol. Depending on the circumstances, being under the influence at the office may be
grounds for immediate suspension or termination. Some companies now offer treatment and
rehabilitation counseling as an alternative to immediate firing. Conditions caused by the use of
prescribed drugs may also require a more tempered response.
6)
, Illegal acts. If you find the employee committing illegal acts, such as theft or embezzlement, immediate
termination is justified. Before you fire the accused employee, however, make sure you know all the
facts and have heard the employee's side of the stor
Product Organizational Structure
- correct answer Product Organizational Structure
A product organizational structure has managers reporting to the president or head of the company by
product type. Product organizational structures are primarily used by retail companies that have stores
in various cities. However, stores in each city may still need a local human resources or marketing
department to carry out functions locally. For example, a small department store company may have a
vice president of sporting goods, housewares and general merchandise at the corporate office. One
manager may report to each vice president. However, each manager may oversee the work of one or
more field marketing employees who travel and handle local marketing stores in several states. These
field marketing employees may work for the sporting goods manager one week in League City, Texas,
then do merchandising for the housewares manager another week in the Sugarland, Texas, market.
Contract Steps
- correct answer 1 Intent
2 Offer
3 Timeframe
4 Obligations
5 Representations
6 Consideration
7 Arbitration
8 Acceptance
Assignment
- correct answer An assignment (Latin cessio) is a term used with similar meanings in the law of
contracts and in the law of real estate. In both instances, it encompasses the transfer of rights held by
one party—the assignor—to another party—the assignee.[1] The details of the assignment determines
some additional rights and liabilities (or duties).
Mistake
- correct answer A mistake is an incorrect understanding by one or more parties to a contract and may
