FBLA Business Law actual guaranteed questions with
verified answers A+ Grade 2026\2027
Principal
- correct answer Person who authorizes another in an agency relationship
E-contract
- correct answer Any contract formed electronically such as over the internet
Buyers select and agree to buy the goods @ sellers store
- correct answer When payment for goods take place at a later date, the transfer of title takes place
when
The principal & 3rd party
- correct answer Any agreement reached by the representative in an agency relationship binds
Bona-fide competition
- correct answer A legitimate defense to wrongful interference
Agent
- correct answer required to negotiate on behalf of the principal or bring him or her and third parties
into contractual relationship.
Independent contractor
- correct answer is a natural person, business, or corporation that provides goods or services to another
entity under terms specified in a contract or within a 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.
Real estate broker/agent
- correct answer a person who acts as an intermediary between sellers and buyers of real estate/real
property and attempts to find sellers who wish to sell and buyers who wish to buy.
, Bailment
- correct answer describes a legal relationship in common law where physical possession of personal
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 to someone else for
safekeeping, and is a cause of action independent of contract or tort.
Trustee
- correct answer 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.
Sole proprietorships
- correct answer The vast majority of small businesses start out like this. These firms are owned by one
person, usually the individual who has day-to-day 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.
Partnership
- correct answer 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.
Corporation
- correct answer 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.
Wages & hours
- correct answer 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,
verified answers A+ Grade 2026\2027
Principal
- correct answer Person who authorizes another in an agency relationship
E-contract
- correct answer Any contract formed electronically such as over the internet
Buyers select and agree to buy the goods @ sellers store
- correct answer When payment for goods take place at a later date, the transfer of title takes place
when
The principal & 3rd party
- correct answer Any agreement reached by the representative in an agency relationship binds
Bona-fide competition
- correct answer A legitimate defense to wrongful interference
Agent
- correct answer required to negotiate on behalf of the principal or bring him or her and third parties
into contractual relationship.
Independent contractor
- correct answer is a natural person, business, or corporation that provides goods or services to another
entity under terms specified in a contract or within a 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.
Real estate broker/agent
- correct answer a person who acts as an intermediary between sellers and buyers of real estate/real
property and attempts to find sellers who wish to sell and buyers who wish to buy.
, Bailment
- correct answer describes a legal relationship in common law where physical possession of personal
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 to someone else for
safekeeping, and is a cause of action independent of contract or tort.
Trustee
- correct answer 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.
Sole proprietorships
- correct answer The vast majority of small businesses start out like this. These firms are owned by one
person, usually the individual who has day-to-day 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.
Partnership
- correct answer 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.
Corporation
- correct answer 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.
Wages & hours
- correct answer 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,
