1
FBLA Business Law 2025
update|comprehensive questions and
verified answers (complete solutions)
Exam|GRADE A+!!
acceptance - (ANSWER)The second party's unqualified willingness to go along
with the first party's proposal
accord and satisfaction - (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 - (ANSWER)The real power a principal gives to an agent
actual notice - (ANSWER)A formal notice given directly to a party, usually using
certified mail with a receipt
adhesion contract - (ANSWER)A take-it-or-leave-it offer made by a party who
holds most of the power in a bargaining session
administrative law - (ANSWER)The body of rules created by government agencies
adultery - (ANSWER)When one spouse has sexual relations with someone outside
of marriage
, 2
affinity - (ANSWER)Related by marriage
agency - (ANSWER)A type of working relationship in which one person represents
another person in a business transaction with a third party
agency by estoppel - (ANSWER)When the principal's actions lead the third party
to believe that the agent is working for the principal
agent - (ANSWER)The person who has been authorized to do the work
agent's agent - (ANSWER)An agent who is appointed by another agent without
the principal's authority to do so
alimony - (ANSWER)An allowance for support paid to one person by the former
spouse in a divorce
alternative dispute resolution (ADR) - (ANSWER)Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
annual percentage rate (APR) - (ANSWER)The true interest rate of a loan
annulment - (ANSWER)A declaration by the court that a marriage was never valid
, 3
apparent authority - (ANSWER)Authority that a third party believes an agent has
while acting on behalf of the principal
appellate court - (ANSWER)The U.S. courts of appeals in the federal system; hears
appeals and reviews cases from the lower courts
arraignment - (ANSWER)A formal hearing during which the defendant is read the
indictment or information and is asked to plead guilty or not guilty
arrest - (ANSWER)Occurs when a person is legally deprived of his or her freedom
articles of incorporation - (ANSWER)A legal document filed with the state to
establish a corporation
assault - (ANSWER)Attempt to commit a battery
asset acquisition - (ANSWER)When one corporation agrees to purchase the
assets, such as property, buildings, and equipment, of a second corporation
assignment - (ANSWER)The transfer of a right under contract
assumption of risk - (ANSWER)A defense against negligence that is raised when
the plaintiff knew of the risk and still took the chance of being injured
, 4
bail - (ANSWER)Money or other property that is left with the court to assure that
a person who has been arrested, but released, will return to trial
bailment - (ANSWER)The transfer of possession and control of personal property
to another with the intent that the same property will be returned later
bankruptcy - (ANSWER)The legal process by which a debtor can make a fresh
start through the sale of assets to pay off creditors
battery - (ANSWER)The unlawful touching of another person
beneficiary - (ANSWER)The person named in an insurance policy to receive the
proceeds of the policy
bigamy - (ANSWER)The illegal act of having two spouses at the same time
bilateral contract - (ANSWER)A contract that contains two promises: one party
promises to do something in exchange for the other's promise to do something
else
bill of sale - (ANSWER)Formal evidence of ownership
breach of contract - (ANSWER)When one party to a contract fails to perform the
duties spelled out by the contract
FBLA Business Law 2025
update|comprehensive questions and
verified answers (complete solutions)
Exam|GRADE A+!!
acceptance - (ANSWER)The second party's unqualified willingness to go along
with the first party's proposal
accord and satisfaction - (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 - (ANSWER)The real power a principal gives to an agent
actual notice - (ANSWER)A formal notice given directly to a party, usually using
certified mail with a receipt
adhesion contract - (ANSWER)A take-it-or-leave-it offer made by a party who
holds most of the power in a bargaining session
administrative law - (ANSWER)The body of rules created by government agencies
adultery - (ANSWER)When one spouse has sexual relations with someone outside
of marriage
, 2
affinity - (ANSWER)Related by marriage
agency - (ANSWER)A type of working relationship in which one person represents
another person in a business transaction with a third party
agency by estoppel - (ANSWER)When the principal's actions lead the third party
to believe that the agent is working for the principal
agent - (ANSWER)The person who has been authorized to do the work
agent's agent - (ANSWER)An agent who is appointed by another agent without
the principal's authority to do so
alimony - (ANSWER)An allowance for support paid to one person by the former
spouse in a divorce
alternative dispute resolution (ADR) - (ANSWER)Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
annual percentage rate (APR) - (ANSWER)The true interest rate of a loan
annulment - (ANSWER)A declaration by the court that a marriage was never valid
, 3
apparent authority - (ANSWER)Authority that a third party believes an agent has
while acting on behalf of the principal
appellate court - (ANSWER)The U.S. courts of appeals in the federal system; hears
appeals and reviews cases from the lower courts
arraignment - (ANSWER)A formal hearing during which the defendant is read the
indictment or information and is asked to plead guilty or not guilty
arrest - (ANSWER)Occurs when a person is legally deprived of his or her freedom
articles of incorporation - (ANSWER)A legal document filed with the state to
establish a corporation
assault - (ANSWER)Attempt to commit a battery
asset acquisition - (ANSWER)When one corporation agrees to purchase the
assets, such as property, buildings, and equipment, of a second corporation
assignment - (ANSWER)The transfer of a right under contract
assumption of risk - (ANSWER)A defense against negligence that is raised when
the plaintiff knew of the risk and still took the chance of being injured
, 4
bail - (ANSWER)Money or other property that is left with the court to assure that
a person who has been arrested, but released, will return to trial
bailment - (ANSWER)The transfer of possession and control of personal property
to another with the intent that the same property will be returned later
bankruptcy - (ANSWER)The legal process by which a debtor can make a fresh
start through the sale of assets to pay off creditors
battery - (ANSWER)The unlawful touching of another person
beneficiary - (ANSWER)The person named in an insurance policy to receive the
proceeds of the policy
bigamy - (ANSWER)The illegal act of having two spouses at the same time
bilateral contract - (ANSWER)A contract that contains two promises: one party
promises to do something in exchange for the other's promise to do something
else
bill of sale - (ANSWER)Formal evidence of ownership
breach of contract - (ANSWER)When one party to a contract fails to perform the
duties spelled out by the contract
