FBLA BUSINESS LAW STUDY GUIDE 2026
EDITION COMPREHENSIVE COMPETITION
REVIEW, COMPREHENSION QUESTIONS,
PRACTICE TEST, CASE-BASED SCENARIOS
AND FBLA EVENT PREPARATION
RESOURCE
Finance Charge - CORRECT ANSWER -The cost of the loan in dollars and
cents
Firm Offer - CORRECT ANSWER -A merchant's written promise to hold an
offer open for the sale or lease of goods
Fixtures - CORRECT ANSWER -Items of personal property attached in such
a way that they become real property
Forbearance - CORRECT ANSWER -The act of not doing what you have the
right to do
Forgery - CORRECT ANSWER -The fraudulent making or material alteration
of a writing
,Franchise - CORRECT ANSWER -A license a company grants to a business or
individual for the right to use its name and sell its products or services
Fraud - CORRECT ANSWER -A deliberate deception intended to secure an
unfair unlawful gain
Full Warranty - CORRECT ANSWER -An assurance that a defective product
will be repaired or replaced without charge within a reasonable time
Garnishment - CORRECT ANSWER -The legal procedure through which a
worker's earnings are withheld for payment of a debt
General Agent - CORRECT ANSWER -An agent who has authority to perform
any act within the scope of a business
Genuine Agreement - CORRECT ANSWER -An agreement that is true and
genuine: a valid offer is met by a valid acceptance
Gratuitous Bailment - CORRECT ANSWER -A bailment for the sole benefit of
the bailment of the bailor
Holder - CORRECT ANSWER -A person who possesses a negotiable
instrument payable to "the order of" the person holding it or to "bearer"
, Holder in Due Course - CORRECT ANSWER -A holder who takes an
instrument for value, in good faith, and without notice that the instrument
is defective
Identity Theft - CORRECT ANSWER -Using a computer to steal financial
employment, educational, medical, and personal data
Implied Authority - CORRECT ANSWER -Additional authority that allows an
agent to perform reasonable acts necessary to carry out the express
authority
Implied Contract - CORRECT ANSWER -A contract that comes about from
the actions of the parties; a contract that exists when an employer has said,
written, or done something lead an employee to reasonable believe that he
or she is not an at-will employee
Implied Covenant - CORRECT ANSWER -A legal argument that holds that
any employment relationship is based on an implied promise that the
employer and employee will be fair and honest with one another
Implied Warranty - CORRECT ANSWER -A guarantee of quality imposed by
law 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
EDITION COMPREHENSIVE COMPETITION
REVIEW, COMPREHENSION QUESTIONS,
PRACTICE TEST, CASE-BASED SCENARIOS
AND FBLA EVENT PREPARATION
RESOURCE
Finance Charge - CORRECT ANSWER -The cost of the loan in dollars and
cents
Firm Offer - CORRECT ANSWER -A merchant's written promise to hold an
offer open for the sale or lease of goods
Fixtures - CORRECT ANSWER -Items of personal property attached in such
a way that they become real property
Forbearance - CORRECT ANSWER -The act of not doing what you have the
right to do
Forgery - CORRECT ANSWER -The fraudulent making or material alteration
of a writing
,Franchise - CORRECT ANSWER -A license a company grants to a business or
individual for the right to use its name and sell its products or services
Fraud - CORRECT ANSWER -A deliberate deception intended to secure an
unfair unlawful gain
Full Warranty - CORRECT ANSWER -An assurance that a defective product
will be repaired or replaced without charge within a reasonable time
Garnishment - CORRECT ANSWER -The legal procedure through which a
worker's earnings are withheld for payment of a debt
General Agent - CORRECT ANSWER -An agent who has authority to perform
any act within the scope of a business
Genuine Agreement - CORRECT ANSWER -An agreement that is true and
genuine: a valid offer is met by a valid acceptance
Gratuitous Bailment - CORRECT ANSWER -A bailment for the sole benefit of
the bailment of the bailor
Holder - CORRECT ANSWER -A person who possesses a negotiable
instrument payable to "the order of" the person holding it or to "bearer"
, Holder in Due Course - CORRECT ANSWER -A holder who takes an
instrument for value, in good faith, and without notice that the instrument
is defective
Identity Theft - CORRECT ANSWER -Using a computer to steal financial
employment, educational, medical, and personal data
Implied Authority - CORRECT ANSWER -Additional authority that allows an
agent to perform reasonable acts necessary to carry out the express
authority
Implied Contract - CORRECT ANSWER -A contract that comes about from
the actions of the parties; a contract that exists when an employer has said,
written, or done something lead an employee to reasonable believe that he
or she is not an at-will employee
Implied Covenant - CORRECT ANSWER -A legal argument that holds that
any employment relationship is based on an implied promise that the
employer and employee will be fair and honest with one another
Implied Warranty - CORRECT ANSWER -A guarantee of quality imposed by
law 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
