FBLA Business Law Exam with
Complete Solutions (Already
Graded A+)
Environmental Protection Agency (EPA) - Answer- The federal agency responsible for
protecting the environment
Equal Credit Opportunity Act (ECOA) - Answer- Makes it illegal for banks and
businesses to discriminate against credit applicants on the basis of their gender, race,
marital status, national origin, religion, age, or because they get public assistance
income
equal pay rule - Answer- A standard that states that employers working in interstate
commerce must pay women the same rate of pay as men holding the same type of job
estate - Answer- The interest or right that a person has in real property
ethics - Answer- The rules used to determine the difference between right and wrong
eviction - Answer- Occurs when a landlord deprives a tenant of the possession of the
premises
executor/executrix - Answer- The person named to carry out the terms of a will
(executor—male; executrix—female)
express authority - Answer- Comes from the orders, commands, or instructions a
principal explicitly gives an agent
express contract - Answer- A contract statement that may be oral or written
express warranty - Answer- An oral or written statement, promise, or other
representation about the quality of a product
expropriation - Answer- When a government seizes a privately-owned business to be
used for a public service
Fair Credit Billing Act - Answer- Requires creditors to correct billing errors brought to
their attention
,Fair Credit Reporting Act - Answer- A federal law that grants people the right to know
what is contained in their credit reports
Fair Debt Collection Practices Act (FDCPA) - Answer- Prohibits certain practices by
debt collectors
Federal Energy Regulatory Commission (FERC) - Answer- Part of the Department of
Energy, this agency regulates electricity and natural gas
felony - Answer- A major crime
fiduciary relationship - Answer- A relationship based on trust
finance charge - Answer- The cost of the loan in dollars and cents
firm offer - Answer- A merchant's written promise to hold an offer open for the sale or
lease of goods
fixtures - Answer- Items of personal property attached in such a way that they become
real property
forbearance - Answer- The act of not doing what you have the right to do
forgery - Answer- The fraudulent making or material alteration of a writing
franchise - 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 - Answer- A deliberate deception intended to secure an unfair and unlawful gain
full warranty - Answer- An assurance that a defective product will be repaired or
replaced without charge within a reasonable time
garnishment - Answer- The legal procedure through which a worker's earnings are
withheld for payment of a debt
general agent - Answer- An agent who has authority to perform any act within the scope
of a business
genuine agreement - Answer- An agreement that is true and genuine: a valid offer is
met by a valid acceptance
gratuitous bailment - Answer- A bailment for the sole benefit of the bailor
holder - Answer- A person who possesses a negotiable instrument payable to "the order
of" the person holding it or to "bearer"
, holder in due course - Answer- A holder who takes an instrument for value, in good
faith, and without notice that the instrument is defective
identity theft - Answer- Using a computer to steal financial, employment, educational,
medical, and personal data
implied authority - Answer- Additional authority that allows an agent to perform
reasonable acts necessary to carry out the express authority
implied contract - 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 to lead an
employee to reasonably believe that he or she is not an at-will employee
implied covenant - 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 - Answer- A guarantee of quality imposed by law
impossibility of performance - Answer- When one of three situations prevent the
performance of a service contract: a death or illness that prevents the performance of a
personal service contract; the destruction of the exact subject matter, or the means for
performance; and illegality
indemnification - Answer- Payment for losses suffered by an agent because of a
principal's instructions
independent contractor - Answer- A person who works for a proprietor to perform a
particular task using his or her own tools and deciding the best way to do the job
indorsement - Answer- The act of placing one's signature on an instrument, usually on
the back, to transfer it to another
infraction - Answer- A minor offense that is usually punishable with a fine and not with
jail time
injunction - Answer- A court order that prevents a party from performing a specific act
insider trading - Answer- When a corporate director or officer buys or sells shares in a
corporation based on firsthand information about the corporation that is not available to
the public
acceptance - Answer- The second party's unqualified willingness to go along with the
first party's proposal
Complete Solutions (Already
Graded A+)
Environmental Protection Agency (EPA) - Answer- The federal agency responsible for
protecting the environment
Equal Credit Opportunity Act (ECOA) - Answer- Makes it illegal for banks and
businesses to discriminate against credit applicants on the basis of their gender, race,
marital status, national origin, religion, age, or because they get public assistance
income
equal pay rule - Answer- A standard that states that employers working in interstate
commerce must pay women the same rate of pay as men holding the same type of job
estate - Answer- The interest or right that a person has in real property
ethics - Answer- The rules used to determine the difference between right and wrong
eviction - Answer- Occurs when a landlord deprives a tenant of the possession of the
premises
executor/executrix - Answer- The person named to carry out the terms of a will
(executor—male; executrix—female)
express authority - Answer- Comes from the orders, commands, or instructions a
principal explicitly gives an agent
express contract - Answer- A contract statement that may be oral or written
express warranty - Answer- An oral or written statement, promise, or other
representation about the quality of a product
expropriation - Answer- When a government seizes a privately-owned business to be
used for a public service
Fair Credit Billing Act - Answer- Requires creditors to correct billing errors brought to
their attention
,Fair Credit Reporting Act - Answer- A federal law that grants people the right to know
what is contained in their credit reports
Fair Debt Collection Practices Act (FDCPA) - Answer- Prohibits certain practices by
debt collectors
Federal Energy Regulatory Commission (FERC) - Answer- Part of the Department of
Energy, this agency regulates electricity and natural gas
felony - Answer- A major crime
fiduciary relationship - Answer- A relationship based on trust
finance charge - Answer- The cost of the loan in dollars and cents
firm offer - Answer- A merchant's written promise to hold an offer open for the sale or
lease of goods
fixtures - Answer- Items of personal property attached in such a way that they become
real property
forbearance - Answer- The act of not doing what you have the right to do
forgery - Answer- The fraudulent making or material alteration of a writing
franchise - 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 - Answer- A deliberate deception intended to secure an unfair and unlawful gain
full warranty - Answer- An assurance that a defective product will be repaired or
replaced without charge within a reasonable time
garnishment - Answer- The legal procedure through which a worker's earnings are
withheld for payment of a debt
general agent - Answer- An agent who has authority to perform any act within the scope
of a business
genuine agreement - Answer- An agreement that is true and genuine: a valid offer is
met by a valid acceptance
gratuitous bailment - Answer- A bailment for the sole benefit of the bailor
holder - Answer- A person who possesses a negotiable instrument payable to "the order
of" the person holding it or to "bearer"
, holder in due course - Answer- A holder who takes an instrument for value, in good
faith, and without notice that the instrument is defective
identity theft - Answer- Using a computer to steal financial, employment, educational,
medical, and personal data
implied authority - Answer- Additional authority that allows an agent to perform
reasonable acts necessary to carry out the express authority
implied contract - 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 to lead an
employee to reasonably believe that he or she is not an at-will employee
implied covenant - 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 - Answer- A guarantee of quality imposed by law
impossibility of performance - Answer- When one of three situations prevent the
performance of a service contract: a death or illness that prevents the performance of a
personal service contract; the destruction of the exact subject matter, or the means for
performance; and illegality
indemnification - Answer- Payment for losses suffered by an agent because of a
principal's instructions
independent contractor - Answer- A person who works for a proprietor to perform a
particular task using his or her own tools and deciding the best way to do the job
indorsement - Answer- The act of placing one's signature on an instrument, usually on
the back, to transfer it to another
infraction - Answer- A minor offense that is usually punishable with a fine and not with
jail time
injunction - Answer- A court order that prevents a party from performing a specific act
insider trading - Answer- When a corporate director or officer buys or sells shares in a
corporation based on firsthand information about the corporation that is not available to
the public
acceptance - Answer- The second party's unqualified willingness to go along with the
first party's proposal
