Business Law FBLA UPDATED ACTUAL
Exam Questions and CORRECT Answers
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
Actual Authority - CORRECT ANSWER - The real power a principal gives to an agent
Actual Notice - CORRECT ANSWER - A formal notice given directly to a party, usually
using certified mail with a receipt
Adhesion contract - CORRECT ANSWER - A take-it-or-leave-it offer made by a party
who holds most of the power in a bargaining session
Administrative Law - CORRECT ANSWER - The body of rules created by government
agencies
Agency - CORRECT ANSWER - A type of working relationship in which one person
represents another person in a business transaction with a third party
Agency by Estoppel - CORRECT ANSWER - When the principal's actions lead the third
party to believe that the agent is working for the principal (appointed but not officially)
Agent - CORRECT ANSWER - The person who has been authorized to do the work
, Alternative Dispute Resolution - CORRECT ANSWER - Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration, conciliation, and
negotiation
Annual Percentage Rate (APR) - CORRECT ANSWER - The true interest rate of a loan
Apparent Authority - CORRECT ANSWER - Authority that a 3rd party believes an agent
has while acting on behalf of the principal
Appellate Court - CORRECT ANSWER - The U.S. courts of appeals in federal system;
hears appeals and reviews cases from the lower courts
Arraignment - CORRECT ANSWER - 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 - CORRECT ANSWER - A legal document filed with the state to
establish a corporation
Arrest - CORRECT ANSWER - Occurs when a person is legally deprived of his or her
freedom
Assault - CORRECT ANSWER - Attempt to commit a battery
Asset Acquisition - CORRECT ANSWER - When one corporation agrees to purchase the
assests, such as property, building, and equipment, of a second corporation
Assignment - CORRECT ANSWER - The transfer of a right under contract
Assumption of Risk - CORRECT ANSWER - A defense against negligence that is raised
when the plaintiff knew of the risk and still took the chance of being injured
Exam Questions and CORRECT Answers
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
Actual Authority - CORRECT ANSWER - The real power a principal gives to an agent
Actual Notice - CORRECT ANSWER - A formal notice given directly to a party, usually
using certified mail with a receipt
Adhesion contract - CORRECT ANSWER - A take-it-or-leave-it offer made by a party
who holds most of the power in a bargaining session
Administrative Law - CORRECT ANSWER - The body of rules created by government
agencies
Agency - CORRECT ANSWER - A type of working relationship in which one person
represents another person in a business transaction with a third party
Agency by Estoppel - CORRECT ANSWER - When the principal's actions lead the third
party to believe that the agent is working for the principal (appointed but not officially)
Agent - CORRECT ANSWER - The person who has been authorized to do the work
, Alternative Dispute Resolution - CORRECT ANSWER - Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration, conciliation, and
negotiation
Annual Percentage Rate (APR) - CORRECT ANSWER - The true interest rate of a loan
Apparent Authority - CORRECT ANSWER - Authority that a 3rd party believes an agent
has while acting on behalf of the principal
Appellate Court - CORRECT ANSWER - The U.S. courts of appeals in federal system;
hears appeals and reviews cases from the lower courts
Arraignment - CORRECT ANSWER - 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 - CORRECT ANSWER - A legal document filed with the state to
establish a corporation
Arrest - CORRECT ANSWER - Occurs when a person is legally deprived of his or her
freedom
Assault - CORRECT ANSWER - Attempt to commit a battery
Asset Acquisition - CORRECT ANSWER - When one corporation agrees to purchase the
assests, such as property, building, and equipment, of a second corporation
Assignment - CORRECT ANSWER - The transfer of a right under contract
Assumption of Risk - CORRECT ANSWER - A defense against negligence that is raised
when the plaintiff knew of the risk and still took the chance of being injured
