Business Law and Ethics Study Guide 120 Scenario Questions with
Answers and Rationales 2026/2027
Practice questions
There are 40 cases with three questions each. Answer all 120 questions before
consulting the model answers. Use each case as the shared context for its three
questions.
Case 1 Sources of law
A manager assumes an old industry custom overrides an applicable statute.
1. Explain sources of law and its relevance to this case.
2. What response would address the problem in the case?
3. Evaluate this claim: “Common practice automatically overrides an applicable law.”
Case 2 Civil and criminal liability
A business act causes private loss and may also violate criminal law.
4. Explain civil and criminal liability and its relevance to this case.
5. What response would address the problem in the case?
6. Evaluate this claim: “One act can create only civil or only criminal consequences,
never both.”
,Case 3 Issue rule application conclusion
An exam answer states a conclusion without linking facts to a rule.
7. Explain issue rule application conclusion and its relevance to this case.
8. What response would address the problem in the case?
9. Evaluate this claim: “Naming a legal doctrine alone completes case analysis.”
Case 4 Offer and acceptance
A seller advertises generally without clearly committing to a specific transaction.
10. Explain offer and acceptance and its relevance to this case.
11. What response would address the problem in the case?
12. Evaluate this claim: “Every advertisement is automatically a binding offer.”
,Case 5 Consideration
One party makes a gratuitous promise with no requested exchange.
13. Explain consideration and its relevance to this case.
14. What response would address the problem in the case?
15. Evaluate this claim: “Every sincere promise is an enforceable contract.”
Case 6 Capacity and legality
An agreement involves disputed capacity and prohibited performance.
16. Explain capacity and legality and its relevance to this case.
17. What response would address the problem in the case?
18. Evaluate this claim: “A signature makes every agreement enforceable regardless
of context.”
, Case 7 Fraudulent misrepresentation
A seller knowingly misstates a key fact to induce purchase.
19. Explain fraudulent misrepresentation and its relevance to this case.
20. What response would address the problem in the case?
21. Evaluate this claim: “Any disappointed expectation automatically proves fraud.”
Case 8 Duress and undue influence
A vulnerable party signs after serious improper coercion.
22. Explain duress and undue influence and its relevance to this case.
23. What response would address the problem in the case?
24. Evaluate this claim: “A signed document always proves voluntary agreement.”
Answers and Rationales 2026/2027
Practice questions
There are 40 cases with three questions each. Answer all 120 questions before
consulting the model answers. Use each case as the shared context for its three
questions.
Case 1 Sources of law
A manager assumes an old industry custom overrides an applicable statute.
1. Explain sources of law and its relevance to this case.
2. What response would address the problem in the case?
3. Evaluate this claim: “Common practice automatically overrides an applicable law.”
Case 2 Civil and criminal liability
A business act causes private loss and may also violate criminal law.
4. Explain civil and criminal liability and its relevance to this case.
5. What response would address the problem in the case?
6. Evaluate this claim: “One act can create only civil or only criminal consequences,
never both.”
,Case 3 Issue rule application conclusion
An exam answer states a conclusion without linking facts to a rule.
7. Explain issue rule application conclusion and its relevance to this case.
8. What response would address the problem in the case?
9. Evaluate this claim: “Naming a legal doctrine alone completes case analysis.”
Case 4 Offer and acceptance
A seller advertises generally without clearly committing to a specific transaction.
10. Explain offer and acceptance and its relevance to this case.
11. What response would address the problem in the case?
12. Evaluate this claim: “Every advertisement is automatically a binding offer.”
,Case 5 Consideration
One party makes a gratuitous promise with no requested exchange.
13. Explain consideration and its relevance to this case.
14. What response would address the problem in the case?
15. Evaluate this claim: “Every sincere promise is an enforceable contract.”
Case 6 Capacity and legality
An agreement involves disputed capacity and prohibited performance.
16. Explain capacity and legality and its relevance to this case.
17. What response would address the problem in the case?
18. Evaluate this claim: “A signature makes every agreement enforceable regardless
of context.”
, Case 7 Fraudulent misrepresentation
A seller knowingly misstates a key fact to induce purchase.
19. Explain fraudulent misrepresentation and its relevance to this case.
20. What response would address the problem in the case?
21. Evaluate this claim: “Any disappointed expectation automatically proves fraud.”
Case 8 Duress and undue influence
A vulnerable party signs after serious improper coercion.
22. Explain duress and undue influence and its relevance to this case.
23. What response would address the problem in the case?
24. Evaluate this claim: “A signed document always proves voluntary agreement.”
