Business Law FBLA UPDATED ACTUAL Exam
SCRIPT 2026/2027 WITH EXPERT-VERIFIED
ANSWERS RATED A+
• No consideration is necessary to make a valid assignment. -✓✓ True
• A contract creating a duty can prohibit delegation. -✓✓ True
• If the obligor breaches, the assignor must sue for the breach. -✓✓ False
• Generally, impossibility of performance refers to an obligor's personal inability to
perform. -✓✓ False
• A ready, willing, and able offer to perform an obligation is a tender. -✓✓ True
• The only remedy generally available for a minor breach is money damages. True -✓✓
True
• An award of punitive damages seeks to place injured parties in the same financial
position they would have been in if there had been no breach. -✓✓ False
• A party injured by a breach of contract is not required to take any steps to minimize the
harm done. -✓✓ False
• Along with minimum ages for marriage with or without parental permission, some
states have laws specifying a minimum age for dating. -✓✓ False
• No law exists that forces the parents of an illegitimate child to marry. -✓✓ True
• Today, about one-fourth of the states allow common-law marriages, although all states
must recognize such a union if it is legal in the state in which it occurred. -✓✓ True
• There are few laws that require parents to support their children until adulthood,
because it is difficult to determine what is adequate support. -✓✓ False
• Keeping a spouse from getting property rights can be accomplished with a prenuptial
agreement. -✓✓ True
• An annulment must be sought from an appropriate court to confirm the status of a void
marriage. -✓✓ False
,• In most no-fault states, irreconcilable differences is the legal reason for marriage
dissolution. -✓✓ True
• States that do not follow the common-law rule are called community property states. -
✓✓ True
• A contract in which ownership of (title to) goods transfers immediately from the seller
to the buyer for a price is a contract to sell. -✓✓ False
• When parties exchange goods for goods, the sale is a barter. -✓✓ True
• The Uniform Commercial Code (UCC) does not govern contracts to sell goods in the
future. -✓✓ False
• The bill of sale serves as written evidence of the transfer of ownership of goods. -✓✓
True
• Casual sellers are also considered merchants. -✓✓ False
• When both parties are merchants, a new term inserted by the offeree automatically
becomes part of the contract if the offeror fails to object within a reasonable time. -✓✓
True
• Even if a party against whom enforcement of an oral contract is sought admits in legal
pleadings or testimony that he or she agreed to part or all of a contract, a signed writing
is still necessary to satisfy the Statute of Frauds. -✓✓ False
• If the buyer has had adequate opportunity to inspect the goods, acceptance may be
indicated by a failure to reject them within a reasonable time. -✓✓ True
• Any person who innocently buys stolen goods from a thief receives title as well as
possession. -✓✓ False
• For ownership of goods to be transferred in a sale, the goods must be both existing
and identified to the transaction. -✓✓ True
• Unless prohibited by the terms of the sale, the seller may identify the goods as the
subject matter of a particular sales contract. -✓✓ True
• Unless goods are both existing and identified to the contract, they are categorized as
future goods. -✓✓ True
• When a bulk transfer is made, the UCC requires notice be given to the buyer's
creditors. -✓✓ False
, • An innocent third party who in good faith buys some or all of the goods from a bulk
transferee cannot get a good title. -✓✓ False
• Auction sales are "without reserve" unless specifically announced in advance to be
"with reserve." -✓✓ False
• By nature or trade usage, each unit of fungible goods may be regarded as equal to
every other unit. -✓✓ True
• A fractional interest in a single good that is to remain undivided is not a valid sale
under the UCC. -✓✓ False
• Caveat emptor means "let the seller beware." -✓✓ False
• If a retailer discovers that a product being sold is unsafe that information must be
reported to the Consumer Preventative Safety Council. -✓✓ False
• A warranty is a statement about a product's qualities or performance and therefore is
not governed by the UCC. -✓✓ False
• The federal Magnuson-Moss Warranty Act applies only to written warranties on certain
products sold to consumers. -✓✓ True
• Puffing and warranties are both statements of fact. -✓✓ False
• A warranty against infringement basically requires that the goods be fit for the ordinary
purposes for which such goods are used. -✓✓ False
• Merchantability requires that any warranty protection that is customary in the trade be
extended to all buyers. -✓✓ True
• Corrective advertising may be ordered by the FTC as a sanction for false and
misleading advertising. -✓✓ True
• Property can be classified as either real or personal. -✓✓ True
• A fixed, original expression of a creative work can be protected by a trademark. -✓✓
True
• A unique word, mark, or symbol identifying products is called a servicemark. -✓✓
False
• Any kind of property may be acquired and transferred by contract. -✓✓ True
SCRIPT 2026/2027 WITH EXPERT-VERIFIED
ANSWERS RATED A+
• No consideration is necessary to make a valid assignment. -✓✓ True
• A contract creating a duty can prohibit delegation. -✓✓ True
• If the obligor breaches, the assignor must sue for the breach. -✓✓ False
• Generally, impossibility of performance refers to an obligor's personal inability to
perform. -✓✓ False
• A ready, willing, and able offer to perform an obligation is a tender. -✓✓ True
• The only remedy generally available for a minor breach is money damages. True -✓✓
True
• An award of punitive damages seeks to place injured parties in the same financial
position they would have been in if there had been no breach. -✓✓ False
• A party injured by a breach of contract is not required to take any steps to minimize the
harm done. -✓✓ False
• Along with minimum ages for marriage with or without parental permission, some
states have laws specifying a minimum age for dating. -✓✓ False
• No law exists that forces the parents of an illegitimate child to marry. -✓✓ True
• Today, about one-fourth of the states allow common-law marriages, although all states
must recognize such a union if it is legal in the state in which it occurred. -✓✓ True
• There are few laws that require parents to support their children until adulthood,
because it is difficult to determine what is adequate support. -✓✓ False
• Keeping a spouse from getting property rights can be accomplished with a prenuptial
agreement. -✓✓ True
• An annulment must be sought from an appropriate court to confirm the status of a void
marriage. -✓✓ False
,• In most no-fault states, irreconcilable differences is the legal reason for marriage
dissolution. -✓✓ True
• States that do not follow the common-law rule are called community property states. -
✓✓ True
• A contract in which ownership of (title to) goods transfers immediately from the seller
to the buyer for a price is a contract to sell. -✓✓ False
• When parties exchange goods for goods, the sale is a barter. -✓✓ True
• The Uniform Commercial Code (UCC) does not govern contracts to sell goods in the
future. -✓✓ False
• The bill of sale serves as written evidence of the transfer of ownership of goods. -✓✓
True
• Casual sellers are also considered merchants. -✓✓ False
• When both parties are merchants, a new term inserted by the offeree automatically
becomes part of the contract if the offeror fails to object within a reasonable time. -✓✓
True
• Even if a party against whom enforcement of an oral contract is sought admits in legal
pleadings or testimony that he or she agreed to part or all of a contract, a signed writing
is still necessary to satisfy the Statute of Frauds. -✓✓ False
• If the buyer has had adequate opportunity to inspect the goods, acceptance may be
indicated by a failure to reject them within a reasonable time. -✓✓ True
• Any person who innocently buys stolen goods from a thief receives title as well as
possession. -✓✓ False
• For ownership of goods to be transferred in a sale, the goods must be both existing
and identified to the transaction. -✓✓ True
• Unless prohibited by the terms of the sale, the seller may identify the goods as the
subject matter of a particular sales contract. -✓✓ True
• Unless goods are both existing and identified to the contract, they are categorized as
future goods. -✓✓ True
• When a bulk transfer is made, the UCC requires notice be given to the buyer's
creditors. -✓✓ False
, • An innocent third party who in good faith buys some or all of the goods from a bulk
transferee cannot get a good title. -✓✓ False
• Auction sales are "without reserve" unless specifically announced in advance to be
"with reserve." -✓✓ False
• By nature or trade usage, each unit of fungible goods may be regarded as equal to
every other unit. -✓✓ True
• A fractional interest in a single good that is to remain undivided is not a valid sale
under the UCC. -✓✓ False
• Caveat emptor means "let the seller beware." -✓✓ False
• If a retailer discovers that a product being sold is unsafe that information must be
reported to the Consumer Preventative Safety Council. -✓✓ False
• A warranty is a statement about a product's qualities or performance and therefore is
not governed by the UCC. -✓✓ False
• The federal Magnuson-Moss Warranty Act applies only to written warranties on certain
products sold to consumers. -✓✓ True
• Puffing and warranties are both statements of fact. -✓✓ False
• A warranty against infringement basically requires that the goods be fit for the ordinary
purposes for which such goods are used. -✓✓ False
• Merchantability requires that any warranty protection that is customary in the trade be
extended to all buyers. -✓✓ True
• Corrective advertising may be ordered by the FTC as a sanction for false and
misleading advertising. -✓✓ True
• Property can be classified as either real or personal. -✓✓ True
• A fixed, original expression of a creative work can be protected by a trademark. -✓✓
True
• A unique word, mark, or symbol identifying products is called a servicemark. -✓✓
False
• Any kind of property may be acquired and transferred by contract. -✓✓ True
