FBLA Business Law Test Preparation Guide
1. Principal Person who authorizes another in an agency relationship
2. E-contract Any contract formed electronically such as over the internet
3. Buyers select and When payment for goods take place at a later date, the transfer of title
takes place
the goods @
sellers store
4. The principal
& 3rd party the representative in an agency relationship binds
5. Bona-fide
com- petition
wrongful interference
6. Agent required to negotiate on behalf of the principal or bring him or her and
third
parties into contractual relationship.
7. Independen is a natural person, business, or corporation that provides goods or
t
services to another entity under terms specified in a contract or within a
contractor
verbal agreement. Independent contractors are usually paid on a
freelance basis. Contractors often work through a limited company or
franchise, which they themselves own, or may work through an umbrella
company.
8. Real estate
a person who acts as an intermediary between sellers and buyers of
bro-
ker/agent real es- tate/real property and attempts to find sellers who wish to sell
and buyers who wish to buy.
9. Bailment describes a legal relationship in common law where physical
possession of per- sonal property, or a chattel, is transferred from one
person (the 'bailor') to another person (the 'bailee') who subsequently
has possession of the property. It arises when a person gives property
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,FBLA Business Law Test Preparation Guide
to someone else for safekeeping, and is a cause of action independent
of contract or tort.
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, FBLA Business Law Test Preparation Guide
10. Trustee is a legal term which, in its broadest sense, can refer to any person
who holds property, authority, or a position of trust or responsibility for the
benefit of another, also can be a person who is allowed to do certain
tasks but not able to gain income.
11. Sole The vast majority of small businesses start out like this. These firms are
proprietor-
owned by one person, usually the individual who has day-to-day
ships
responsibility for running the business. They own all the assets of the
business and the profits generated by it. They also assume complete
responsibility for any of its liabilities or debts.
12. Partnership two or more people share ownership of a single business. Like
proprietorships, the law does not distinguish between the business
and its owners. They should have a legal agreement that sets forth
how decisions will be made, profits will be shared, disputes will be
resolved. Many split up at crisis times unless there is
defined process. They must decide how much time and capital each will
contribute, etc.
13. Corporation chartered by the state in which it is headquartered, is considered by
law to be a unique entity, separate and apart from those who own it. It can
be taxed; it can be sued; it can enter into contractual agreements. The
owners are its shareholders. The shareholders elect a board of
directors to oversee the major policies and decisions. It has a life of its
own and does not dissolve when ownership changes.
14. Wages & hours It requires employers to pay covered employees who are not otherwise
exempt at least the federal minimum wage and overtime pay of one-
and-one-half-times the regular rate of pay. For nonagricultural
operations, it restricts the hours that children under age 16 can work
and forbids the employment of children under age 18 in certain jobs
deemed too dangerous. For agricultural operations, it prohibits the
employment of children under age 16 during school hours and in
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1. Principal Person who authorizes another in an agency relationship
2. E-contract Any contract formed electronically such as over the internet
3. Buyers select and When payment for goods take place at a later date, the transfer of title
takes place
the goods @
sellers store
4. The principal
& 3rd party the representative in an agency relationship binds
5. Bona-fide
com- petition
wrongful interference
6. Agent required to negotiate on behalf of the principal or bring him or her and
third
parties into contractual relationship.
7. Independen is a natural person, business, or corporation that provides goods or
t
services to another entity under terms specified in a contract or within a
contractor
verbal agreement. Independent contractors are usually paid on a
freelance basis. Contractors often work through a limited company or
franchise, which they themselves own, or may work through an umbrella
company.
8. Real estate
a person who acts as an intermediary between sellers and buyers of
bro-
ker/agent real es- tate/real property and attempts to find sellers who wish to sell
and buyers who wish to buy.
9. Bailment describes a legal relationship in common law where physical
possession of per- sonal property, or a chattel, is transferred from one
person (the 'bailor') to another person (the 'bailee') who subsequently
has possession of the property. It arises when a person gives property
1/
17
,FBLA Business Law Test Preparation Guide
to someone else for safekeeping, and is a cause of action independent
of contract or tort.
2/
17
, FBLA Business Law Test Preparation Guide
10. Trustee is a legal term which, in its broadest sense, can refer to any person
who holds property, authority, or a position of trust or responsibility for the
benefit of another, also can be a person who is allowed to do certain
tasks but not able to gain income.
11. Sole The vast majority of small businesses start out like this. These firms are
proprietor-
owned by one person, usually the individual who has day-to-day
ships
responsibility for running the business. They own all the assets of the
business and the profits generated by it. They also assume complete
responsibility for any of its liabilities or debts.
12. Partnership two or more people share ownership of a single business. Like
proprietorships, the law does not distinguish between the business
and its owners. They should have a legal agreement that sets forth
how decisions will be made, profits will be shared, disputes will be
resolved. Many split up at crisis times unless there is
defined process. They must decide how much time and capital each will
contribute, etc.
13. Corporation chartered by the state in which it is headquartered, is considered by
law to be a unique entity, separate and apart from those who own it. It can
be taxed; it can be sued; it can enter into contractual agreements. The
owners are its shareholders. The shareholders elect a board of
directors to oversee the major policies and decisions. It has a life of its
own and does not dissolve when ownership changes.
14. Wages & hours It requires employers to pay covered employees who are not otherwise
exempt at least the federal minimum wage and overtime pay of one-
and-one-half-times the regular rate of pay. For nonagricultural
operations, it restricts the hours that children under age 16 can work
and forbids the employment of children under age 18 in certain jobs
deemed too dangerous. For agricultural operations, it prohibits the
employment of children under age 16 during school hours and in
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