Business Law FBLA UPDATED ACTUAL Exam 2026/2027
QUESTIONS WITH ANSWERS GRADED A+
• Acceptance -✓✓ The second party's unqualified willingness to go along with the first
party's proposal
• Accord and Satisfaction -✓✓ A legal way to settle contractual disputes by which one
party agrees to accept less than the amount due as full payment
• Actual Authority -✓✓ The real power a principal gives to an agent
• Actual Notice -✓✓ A formal notice given directly to a party, usually using certified mail
with a receipt
• Adhesion contract -✓✓ A take-it-or-leave-it offer made by a party who holds most of
the power in a bargaining session
• Administrative Law -✓✓ The body of rules created by government agencies
• Agency -✓✓ A type of working relationship in which one person represents another
person in a business transaction with a third party
• Agency by Estoppel -✓✓ When the principal's actions lead the third party to believe
that the agent is working for the principal (appointed but not officially)
• Agent -✓✓ The person who has been authorized to do the work
• Alternative Dispute Resolution -✓✓ Parties try to resolve disagreements outside of the
usual court system, by mediation, arbitration, conciliation, and negotiation
• Annual Percentage Rate (APR) -✓✓ The true interest rate of a loan
• Apparent Authority -✓✓ Authority that a 3rd party believes an agent has while acting
on behalf of the principal
• Appellate Court -✓✓ The U.S. courts of appeals in federal system; hears appeals and
reviews cases from the lower courts
• Arraignment -✓✓ A formal hearing during which the defendant is read the indictment
or info and is asked to plead guilty or not guilty
• Articles of Incorporation -✓✓ A legal document filed with the state to establish a
corporation
, • Arrest -✓✓ Occurs when a person is legally deprived of his or her freedom
• Assault -✓✓ Attempt to commit a battery
• Asset Acquisition -✓✓ When one corporation agrees to purchase the assests, such as
property, building, and equipment, of a second corporation
• Assignment -✓✓ The transfer of a right under contract
• Assumption of Risk -✓✓ A defense against negligence that is raised when the plaintiff
knew of the risk and still took the chance of being injured
• Bail -✓✓ Money or other property that is left with the court to assure that a person who
has been arrested, but released, will return to jail
• Bailment -✓✓ The transfer of possession and control of personal property to another
with the intent that the same property will be returned later
• Bankruptcy -✓✓ The legal process by which a debtor can make a fresh start through
the sale of assets to pay off creditors
• Battery -✓✓ The unlawful touching of another person
• Bigamy -✓✓ The illegal act of having two spouses at the same time
• Bilateral Contract -✓✓ A contract that contains two promises: one party promises to do
something in exchange for other's promise to do something else
• Bill of Sale -✓✓ Formal evidence of ownership
• Breach of Contract -✓✓ When one party to a contract fails to perform the duties
spelled out by the contract
• Burglary -✓✓ Breaking and entering a house or other structure to commit a felony
• Capacity -✓✓ The legal ability to enter into a contract
• Carrier -✓✓ A business that transports persons, goods, or both
• Certificate of Incorporation -✓✓ A corporation's official authorization to do business in
a state
QUESTIONS WITH ANSWERS GRADED A+
• Acceptance -✓✓ The second party's unqualified willingness to go along with the first
party's proposal
• Accord and Satisfaction -✓✓ A legal way to settle contractual disputes by which one
party agrees to accept less than the amount due as full payment
• Actual Authority -✓✓ The real power a principal gives to an agent
• Actual Notice -✓✓ A formal notice given directly to a party, usually using certified mail
with a receipt
• Adhesion contract -✓✓ A take-it-or-leave-it offer made by a party who holds most of
the power in a bargaining session
• Administrative Law -✓✓ The body of rules created by government agencies
• Agency -✓✓ A type of working relationship in which one person represents another
person in a business transaction with a third party
• Agency by Estoppel -✓✓ When the principal's actions lead the third party to believe
that the agent is working for the principal (appointed but not officially)
• Agent -✓✓ The person who has been authorized to do the work
• Alternative Dispute Resolution -✓✓ Parties try to resolve disagreements outside of the
usual court system, by mediation, arbitration, conciliation, and negotiation
• Annual Percentage Rate (APR) -✓✓ The true interest rate of a loan
• Apparent Authority -✓✓ Authority that a 3rd party believes an agent has while acting
on behalf of the principal
• Appellate Court -✓✓ The U.S. courts of appeals in federal system; hears appeals and
reviews cases from the lower courts
• Arraignment -✓✓ A formal hearing during which the defendant is read the indictment
or info and is asked to plead guilty or not guilty
• Articles of Incorporation -✓✓ A legal document filed with the state to establish a
corporation
, • Arrest -✓✓ Occurs when a person is legally deprived of his or her freedom
• Assault -✓✓ Attempt to commit a battery
• Asset Acquisition -✓✓ When one corporation agrees to purchase the assests, such as
property, building, and equipment, of a second corporation
• Assignment -✓✓ The transfer of a right under contract
• Assumption of Risk -✓✓ A defense against negligence that is raised when the plaintiff
knew of the risk and still took the chance of being injured
• Bail -✓✓ Money or other property that is left with the court to assure that a person who
has been arrested, but released, will return to jail
• Bailment -✓✓ The transfer of possession and control of personal property to another
with the intent that the same property will be returned later
• Bankruptcy -✓✓ The legal process by which a debtor can make a fresh start through
the sale of assets to pay off creditors
• Battery -✓✓ The unlawful touching of another person
• Bigamy -✓✓ The illegal act of having two spouses at the same time
• Bilateral Contract -✓✓ A contract that contains two promises: one party promises to do
something in exchange for other's promise to do something else
• Bill of Sale -✓✓ Formal evidence of ownership
• Breach of Contract -✓✓ When one party to a contract fails to perform the duties
spelled out by the contract
• Burglary -✓✓ Breaking and entering a house or other structure to commit a felony
• Capacity -✓✓ The legal ability to enter into a contract
• Carrier -✓✓ A business that transports persons, goods, or both
• Certificate of Incorporation -✓✓ A corporation's official authorization to do business in
a state
