Business Law FBLA Question and Answer [2026] |
UPDATED ACTUAL Exam | Detailed Solutions
• actual notice -✓✓ A formal notice given directly to a party, usually using
certified mail with a receipt
• adhesion contract -✓✓ A take-it-or-leave-it offer made by a party who holds most
of the power in a bargaining session
• administrative law -✓✓ The body of rules created by government agencies
• adultery -✓✓ When one spouse has sexual relations with someone outside of
marriage
• affinity -✓✓ Related by marriage
• agency -✓✓ A type of working relationship in which one person represents
another person in a business transaction with a third party
• agency by estoppel -✓✓ When the principal's actions lead the third party to
believe that the agent is working for the principal
• agent -✓✓ The person who has been authorized to do the work
• agent's agent -✓✓ An agent who is appointed by another agent without the
principal's authority to do so
,• alimony -✓✓ An allowance for support paid to one person by the former spouse
in a divorce
• alternative dispute resolution (ADR) -✓✓ Parties try to resolve disagreements
outside of the usual court system, by mediation, arbitration, conciliation, and
negotiation
• annual percentage rate (APR) -✓✓ The true interest rate of a loan
• annulment -✓✓ A declaration by the court that a marriage was never valid
• apparent authority -✓✓ Authority that a third party believes an agent has while
acting on behalf of the principal
• appellate court -✓✓ The U.S. courts of appeals in the federal system; hears
appeals and reviews cases from the lower courts
• arraignment -✓✓ A formal hearing during which the defendant is read the
indictment or information and is asked to plead guilty or not guilty
• arrest -✓✓ Occurs when a person is legally deprived of his or her freedom
• articles of incorporation -✓✓ A legal document filed with the state to establish a
corporation
• assault -✓✓ Attempt to commit a battery
, • asset acquisition -✓✓ When one corporation agrees to purchase the assets, such
as property, buildings, and equipment, of a second corporation
• assignment -✓✓ The transfer of a right under contract
• assumption of risk -✓✓ A defense against negligence that is raised when the
plaintiff knew of the risk and still took the chance of being injured
• bail -✓✓ 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 -✓✓ The transfer of possession and control of personal property to
another with the intent that the same property will be returned later
• bankruptcy -✓✓ The legal process by which a debtor can make a fresh start
through the sale of assets to pay off creditors
• battery -✓✓ The unlawful touching of another person
• beneficiary -✓✓ The person named in an insurance policy to receive the proceeds
of the policy
• bigamy -✓✓ The illegal act of having two spouses at the same time
• bilateral contract -✓✓ A contract that contains two promises: one party promises
to do something in exchange for the other's promise to do something else
UPDATED ACTUAL Exam | Detailed Solutions
• actual notice -✓✓ A formal notice given directly to a party, usually using
certified mail with a receipt
• adhesion contract -✓✓ A take-it-or-leave-it offer made by a party who holds most
of the power in a bargaining session
• administrative law -✓✓ The body of rules created by government agencies
• adultery -✓✓ When one spouse has sexual relations with someone outside of
marriage
• affinity -✓✓ Related by marriage
• agency -✓✓ A type of working relationship in which one person represents
another person in a business transaction with a third party
• agency by estoppel -✓✓ When the principal's actions lead the third party to
believe that the agent is working for the principal
• agent -✓✓ The person who has been authorized to do the work
• agent's agent -✓✓ An agent who is appointed by another agent without the
principal's authority to do so
,• alimony -✓✓ An allowance for support paid to one person by the former spouse
in a divorce
• alternative dispute resolution (ADR) -✓✓ Parties try to resolve disagreements
outside of the usual court system, by mediation, arbitration, conciliation, and
negotiation
• annual percentage rate (APR) -✓✓ The true interest rate of a loan
• annulment -✓✓ A declaration by the court that a marriage was never valid
• apparent authority -✓✓ Authority that a third party believes an agent has while
acting on behalf of the principal
• appellate court -✓✓ The U.S. courts of appeals in the federal system; hears
appeals and reviews cases from the lower courts
• arraignment -✓✓ A formal hearing during which the defendant is read the
indictment or information and is asked to plead guilty or not guilty
• arrest -✓✓ Occurs when a person is legally deprived of his or her freedom
• articles of incorporation -✓✓ A legal document filed with the state to establish a
corporation
• assault -✓✓ Attempt to commit a battery
, • asset acquisition -✓✓ When one corporation agrees to purchase the assets, such
as property, buildings, and equipment, of a second corporation
• assignment -✓✓ The transfer of a right under contract
• assumption of risk -✓✓ A defense against negligence that is raised when the
plaintiff knew of the risk and still took the chance of being injured
• bail -✓✓ 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 -✓✓ The transfer of possession and control of personal property to
another with the intent that the same property will be returned later
• bankruptcy -✓✓ The legal process by which a debtor can make a fresh start
through the sale of assets to pay off creditors
• battery -✓✓ The unlawful touching of another person
• beneficiary -✓✓ The person named in an insurance policy to receive the proceeds
of the policy
• bigamy -✓✓ The illegal act of having two spouses at the same time
• bilateral contract -✓✓ A contract that contains two promises: one party promises
to do something in exchange for the other's promise to do something else
