FBLA Business Law
with correct answers
2025/2026
acceptance - correct answersThe second party's unqualified willingness to go along with the
first party's proposal
accord and satisfaction - correct answersA legal way to settle contractual disputes by which one
party agrees to accept less than the amount due as full payment
actual authority - correct answersThe real power a principal gives to an agent
actual notice - correct answersA formal notice given directly to a party, usually using certified
mail with a receipt
adhesion contract - correct answersA take-it-or-leave-it offer made by a party who holds most of
the power in a bargaining session
administrative law - correct answersThe body of rules created by government agencies
adultery - correct answersWhen one spouse has sexual relations with someone outside of
marriage
affinity - correct answersRelated by marriage
,agency - correct answersA type of working relationship in which one person represents another
person in a business transaction with a third party
agency by estoppel - correct answersWhen the principal's actions lead the third party to believe
that the agent is working for the principal
agent - correct answersThe person who has been authorized to do the work
agent's agent - correct answersAn agent who is appointed by another agent without the
principal's authority to do so
alimony - correct answersAn allowance for support paid to one person by the former spouse in
a divorce
alternative dispute resolution (ADR) - correct answersParties try to resolve disagreements
outside of the usual court system, by mediation, arbitration, conciliation, and negotiation
annual percentage rate (APR) - correct answersThe true interest rate of a loan
annulment - correct answersA declaration by the court that a marriage was never valid
apparent authority - correct answersAuthority that a third party believes an agent has while
acting on behalf of the principal
appellate court - correct answersThe U.S. courts of appeals in the federal system; hears appeals
and reviews cases from the lower courts
, arraignment - correct answersA formal hearing during which the defendant is read the
indictment or information and is asked to plead guilty or not guilty
arrest - correct answersOccurs when a person is legally deprived of his or her freedom
articles of incorporation - correct answersA legal document filed with the state to establish a
corporation
assault - correct answersAttempt to commit a battery
asset acquisition - correct answersWhen one corporation agrees to purchase the assets, such as
property, buildings, and equipment, of a second corporation
assignment - correct answersThe transfer of a right under contract
assumption of risk - correct answersA defense against negligence that is raised when the
plaintiff knew of the risk and still took the chance of being injured
bail - correct answersMoney 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 - correct answersThe transfer of possession and control of personal property to
another with the intent that the same property will be returned later
bankruptcy - correct answersThe legal process by which a debtor can make a fresh start through
the sale of assets to pay off creditors
battery - correct answersThe unlawful touching of another person
with correct answers
2025/2026
acceptance - correct answersThe second party's unqualified willingness to go along with the
first party's proposal
accord and satisfaction - correct answersA legal way to settle contractual disputes by which one
party agrees to accept less than the amount due as full payment
actual authority - correct answersThe real power a principal gives to an agent
actual notice - correct answersA formal notice given directly to a party, usually using certified
mail with a receipt
adhesion contract - correct answersA take-it-or-leave-it offer made by a party who holds most of
the power in a bargaining session
administrative law - correct answersThe body of rules created by government agencies
adultery - correct answersWhen one spouse has sexual relations with someone outside of
marriage
affinity - correct answersRelated by marriage
,agency - correct answersA type of working relationship in which one person represents another
person in a business transaction with a third party
agency by estoppel - correct answersWhen the principal's actions lead the third party to believe
that the agent is working for the principal
agent - correct answersThe person who has been authorized to do the work
agent's agent - correct answersAn agent who is appointed by another agent without the
principal's authority to do so
alimony - correct answersAn allowance for support paid to one person by the former spouse in
a divorce
alternative dispute resolution (ADR) - correct answersParties try to resolve disagreements
outside of the usual court system, by mediation, arbitration, conciliation, and negotiation
annual percentage rate (APR) - correct answersThe true interest rate of a loan
annulment - correct answersA declaration by the court that a marriage was never valid
apparent authority - correct answersAuthority that a third party believes an agent has while
acting on behalf of the principal
appellate court - correct answersThe U.S. courts of appeals in the federal system; hears appeals
and reviews cases from the lower courts
, arraignment - correct answersA formal hearing during which the defendant is read the
indictment or information and is asked to plead guilty or not guilty
arrest - correct answersOccurs when a person is legally deprived of his or her freedom
articles of incorporation - correct answersA legal document filed with the state to establish a
corporation
assault - correct answersAttempt to commit a battery
asset acquisition - correct answersWhen one corporation agrees to purchase the assets, such as
property, buildings, and equipment, of a second corporation
assignment - correct answersThe transfer of a right under contract
assumption of risk - correct answersA defense against negligence that is raised when the
plaintiff knew of the risk and still took the chance of being injured
bail - correct answersMoney 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 - correct answersThe transfer of possession and control of personal property to
another with the intent that the same property will be returned later
bankruptcy - correct answersThe legal process by which a debtor can make a fresh start through
the sale of assets to pay off creditors
battery - correct answersThe unlawful touching of another person
