NAU ACC 205 PRACTICE EXAAMS 2025/2026 QUESTIONS
AND ANSWERS GRADED A+
✔✔forgery - ✔✔The fraudulent making or altering of any writing in a way that changes
the legal rights and liabilities of another.
✔✔fraud - ✔✔wrongful or criminal deception intended to result in financial or personal
gain.
✔✔intent - ✔✔intention or purpose.
✔✔larceny - ✔✔The wrongful taking and carrying away of another person's personal
property with the intent to permanently deprive the owner of the property. Some states
classify larceny as either grand or petit, depending on the property's value.
✔✔legality - ✔✔he quality or state of being in accordance with the law.
✔✔liquidated damages - ✔✔An amount, stipulated in the contract, that the parties to a
contract believe to be a reasonable estimation of the damages that will occur in the
event of a breach.
✔✔mailbox rule - ✔✔A rule providing that an acceptance of an offer becomes effective
on dispatch. Acceptance takes effect, thus completing formation of the contract, at the
time the offeree sends or delivers the communication via the mode expressly or
impliedly authorized by the offeror.
✔✔merchant - ✔✔a person or company involved in wholesale trade, especially one
dealing with foreign countries or supplying merchandise to a particular trade.
✔✔minor - ✔✔a person under the age of full legal responsibility.
✔✔missing price term - ✔✔****
✔✔missing quantity term - ✔✔*****
✔✔mitigation - ✔✔he action of reducing the severity, seriousness, or painfulness of
something.
✔✔money laundering - ✔✔Falsely reporting income that has been obtained through
criminal activity as income obtained through a legitimate business enterprise—in effect,
"laundering" the "dirty money."
✔✔mutual mistake - ✔✔occurs when the parties to a contract are both mistaken about
the same material fact within their contract. They are at cross-purposes.
, ✔✔negligence - ✔✔failure to take proper care in doing something.
✔✔nominal damages - ✔✔A small monetary award (often one dollar) granted to a
plaintiff when no actual damage was suffered or when the plaintiff is unable to show
such loss with sufficient certainty.
✔✔novation - ✔✔The substitution, by agreement, of a new contract for an old one, with
the rights under the old one being terminated. Typically, there is a substitution of a new
person who is responsible for the contract and the removal of an original party's rights
and duties under the contract.
✔✔offer - ✔✔A promise or commitment to perform or refrain from performing some
specified act in the future.
✔✔past consideration - ✔✔Something given or some act done in the past, which cannot
ordinarily be consideration for a later bargain.
✔✔penalty - ✔✔A sum inserted into a contract, not as a measure of compensation for
its breach but rather as punishment for a default. The agreement as to the amount will
not be enforced, and recovery will be limited to actual damages.
✔✔preexisting duty - ✔✔rule is a legal concept relating to when the performance of a
legal duty is classified as consideration.
✔✔preponderance of the evidence - ✔✔the greater weight of the evidence required in a
civil (non-criminal) lawsuit for the trier of fact (jury or judge without a jury) to decide in
favor of one side or the other.
✔✔promise - ✔✔****
✔✔punitive damages - ✔✔damages exceeding simple compensation and awarded to
punish the defendant.
✔✔ratification - ✔✔the official way to confirm something, usually by vote. It is the formal
validation of a proposed law.
✔✔reasonable person standard - ✔✔A phrase frequently used in tort and Criminal Law
to denote a hypothetical person in society who exercises average care, skill, and
judgment in conduct and who serves as a comparative standard for determining liability.
✔✔reformation - ✔✔A court-ordered correction of a written contract so that it reflects the
true intentions of the parties.
AND ANSWERS GRADED A+
✔✔forgery - ✔✔The fraudulent making or altering of any writing in a way that changes
the legal rights and liabilities of another.
✔✔fraud - ✔✔wrongful or criminal deception intended to result in financial or personal
gain.
✔✔intent - ✔✔intention or purpose.
✔✔larceny - ✔✔The wrongful taking and carrying away of another person's personal
property with the intent to permanently deprive the owner of the property. Some states
classify larceny as either grand or petit, depending on the property's value.
✔✔legality - ✔✔he quality or state of being in accordance with the law.
✔✔liquidated damages - ✔✔An amount, stipulated in the contract, that the parties to a
contract believe to be a reasonable estimation of the damages that will occur in the
event of a breach.
✔✔mailbox rule - ✔✔A rule providing that an acceptance of an offer becomes effective
on dispatch. Acceptance takes effect, thus completing formation of the contract, at the
time the offeree sends or delivers the communication via the mode expressly or
impliedly authorized by the offeror.
✔✔merchant - ✔✔a person or company involved in wholesale trade, especially one
dealing with foreign countries or supplying merchandise to a particular trade.
✔✔minor - ✔✔a person under the age of full legal responsibility.
✔✔missing price term - ✔✔****
✔✔missing quantity term - ✔✔*****
✔✔mitigation - ✔✔he action of reducing the severity, seriousness, or painfulness of
something.
✔✔money laundering - ✔✔Falsely reporting income that has been obtained through
criminal activity as income obtained through a legitimate business enterprise—in effect,
"laundering" the "dirty money."
✔✔mutual mistake - ✔✔occurs when the parties to a contract are both mistaken about
the same material fact within their contract. They are at cross-purposes.
, ✔✔negligence - ✔✔failure to take proper care in doing something.
✔✔nominal damages - ✔✔A small monetary award (often one dollar) granted to a
plaintiff when no actual damage was suffered or when the plaintiff is unable to show
such loss with sufficient certainty.
✔✔novation - ✔✔The substitution, by agreement, of a new contract for an old one, with
the rights under the old one being terminated. Typically, there is a substitution of a new
person who is responsible for the contract and the removal of an original party's rights
and duties under the contract.
✔✔offer - ✔✔A promise or commitment to perform or refrain from performing some
specified act in the future.
✔✔past consideration - ✔✔Something given or some act done in the past, which cannot
ordinarily be consideration for a later bargain.
✔✔penalty - ✔✔A sum inserted into a contract, not as a measure of compensation for
its breach but rather as punishment for a default. The agreement as to the amount will
not be enforced, and recovery will be limited to actual damages.
✔✔preexisting duty - ✔✔rule is a legal concept relating to when the performance of a
legal duty is classified as consideration.
✔✔preponderance of the evidence - ✔✔the greater weight of the evidence required in a
civil (non-criminal) lawsuit for the trier of fact (jury or judge without a jury) to decide in
favor of one side or the other.
✔✔promise - ✔✔****
✔✔punitive damages - ✔✔damages exceeding simple compensation and awarded to
punish the defendant.
✔✔ratification - ✔✔the official way to confirm something, usually by vote. It is the formal
validation of a proposed law.
✔✔reasonable person standard - ✔✔A phrase frequently used in tort and Criminal Law
to denote a hypothetical person in society who exercises average care, skill, and
judgment in conduct and who serves as a comparative standard for determining liability.
✔✔reformation - ✔✔A court-ordered correction of a written contract so that it reflects the
true intentions of the parties.
