FBLA Business Law Exam | 2026/2027 | A+ Grade | Verified Questions and
Answers
acceptance - (ANSWER)The second party's unqualified willingness to go along with the first party's
proposal
accord and satisfaction - (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 - (ANSWER)The real power a principal gives to an agent
actual notice - (ANSWER)A formal notice given directly to a party, usually using certified mail with a
receipt
adhesion contract - (ANSWER)A take-it-or-leave-it offer made by a party who holds most of the power in
a bargaining session
administrative law - (ANSWER)The body of rules created by government agencies
adultery - (ANSWER)When one spouse has sexual relations with someone outside of marriage
affinity - (ANSWER)Related by marriage
agency - (ANSWER)A type of working relationship in which one person represents another person in a
business transaction with a third party
agency by estoppel - (ANSWER)When the principal's actions lead the third party to believe that the agent
is working for the principal
agent - (ANSWER)The person who has been authorized to do the work
,FBLA Business Law Exam | 2026/2027 | A+ Grade | Verified Questions and
Answers
agent's agent - (ANSWER)An agent who is appointed by another agent without the principal's authority
to do so
alimony - (ANSWER)An allowance for support paid to one person by the former spouse in a divorce
alternative dispute resolution (ADR) - (ANSWER)Parties try to resolve disagreements outside of the usual
court system, by mediation, arbitration, conciliation, and negotiation
annual percentage rate (APR) - (ANSWER)The true interest rate of a loan
annulment - (ANSWER)A declaration by the court that a marriage was never valid
apparent authority - (ANSWER)Authority that a third party believes an agent has while acting on behalf
of the principal
appellate court - (ANSWER)The U.S. courts of appeals in the federal system; hears appeals and reviews
cases from the lower courts
arraignment - (ANSWER)A formal hearing during which the defendant is read the indictment or
information and is asked to plead guilty or not guilty
arrest - (ANSWER)Occurs when a person is legally deprived of his or her freedom
articles of incorporation - (ANSWER)A legal document filed with the state to establish a corporation
assault - (ANSWER)Attempt to commit a battery
, FBLA Business Law Exam | 2026/2027 | A+ Grade | Verified Questions and
Answers
asset acquisition - (ANSWER)When one corporation agrees to purchase the assets, such as property,
buildings, and equipment, of a second corporation
assignment - (ANSWER)The transfer of a right under contract
assumption of risk - (ANSWER)A defense against negligence that is raised when the plaintiff knew of the
risk and still took the chance of being injured
bail - (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 - (ANSWER)The transfer of possession and control of personal property to another with the
intent that the same property will be returned later
bankruptcy - (ANSWER)The legal process by which a debtor can make a fresh start through the sale of
assets to pay off creditors
battery - (ANSWER)The unlawful touching of another person
beneficiary - (ANSWER)The person named in an insurance policy to receive the proceeds of the policy
bigamy - (ANSWER)The illegal act of having two spouses at the same time
bilateral contract - (ANSWER)A contract that contains two promises: one party promises to do something
in exchange for the other's promise to do something else
bill of sale - (ANSWER)Formal evidence of ownership
Answers
acceptance - (ANSWER)The second party's unqualified willingness to go along with the first party's
proposal
accord and satisfaction - (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 - (ANSWER)The real power a principal gives to an agent
actual notice - (ANSWER)A formal notice given directly to a party, usually using certified mail with a
receipt
adhesion contract - (ANSWER)A take-it-or-leave-it offer made by a party who holds most of the power in
a bargaining session
administrative law - (ANSWER)The body of rules created by government agencies
adultery - (ANSWER)When one spouse has sexual relations with someone outside of marriage
affinity - (ANSWER)Related by marriage
agency - (ANSWER)A type of working relationship in which one person represents another person in a
business transaction with a third party
agency by estoppel - (ANSWER)When the principal's actions lead the third party to believe that the agent
is working for the principal
agent - (ANSWER)The person who has been authorized to do the work
,FBLA Business Law Exam | 2026/2027 | A+ Grade | Verified Questions and
Answers
agent's agent - (ANSWER)An agent who is appointed by another agent without the principal's authority
to do so
alimony - (ANSWER)An allowance for support paid to one person by the former spouse in a divorce
alternative dispute resolution (ADR) - (ANSWER)Parties try to resolve disagreements outside of the usual
court system, by mediation, arbitration, conciliation, and negotiation
annual percentage rate (APR) - (ANSWER)The true interest rate of a loan
annulment - (ANSWER)A declaration by the court that a marriage was never valid
apparent authority - (ANSWER)Authority that a third party believes an agent has while acting on behalf
of the principal
appellate court - (ANSWER)The U.S. courts of appeals in the federal system; hears appeals and reviews
cases from the lower courts
arraignment - (ANSWER)A formal hearing during which the defendant is read the indictment or
information and is asked to plead guilty or not guilty
arrest - (ANSWER)Occurs when a person is legally deprived of his or her freedom
articles of incorporation - (ANSWER)A legal document filed with the state to establish a corporation
assault - (ANSWER)Attempt to commit a battery
, FBLA Business Law Exam | 2026/2027 | A+ Grade | Verified Questions and
Answers
asset acquisition - (ANSWER)When one corporation agrees to purchase the assets, such as property,
buildings, and equipment, of a second corporation
assignment - (ANSWER)The transfer of a right under contract
assumption of risk - (ANSWER)A defense against negligence that is raised when the plaintiff knew of the
risk and still took the chance of being injured
bail - (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 - (ANSWER)The transfer of possession and control of personal property to another with the
intent that the same property will be returned later
bankruptcy - (ANSWER)The legal process by which a debtor can make a fresh start through the sale of
assets to pay off creditors
battery - (ANSWER)The unlawful touching of another person
beneficiary - (ANSWER)The person named in an insurance policy to receive the proceeds of the policy
bigamy - (ANSWER)The illegal act of having two spouses at the same time
bilateral contract - (ANSWER)A contract that contains two promises: one party promises to do something
in exchange for the other's promise to do something else
bill of sale - (ANSWER)Formal evidence of ownership
