BUSINESS LAW FBLA CERTIFICATION
EVALUATION VERIFIED QUESTIONS AND
SOLUTIONS FULL REVIEW PACK
●● 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
●● 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
●● 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
EVALUATION VERIFIED QUESTIONS AND
SOLUTIONS FULL REVIEW PACK
●● 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
●● 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
●● 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
