FBLA PAPER 4 2025 GRADED A+ (QUESTIONS WITH 100%
CORRECT
acceptance - The second party's unqualified willingness to go along with the first party's proposal
accord and satisfaction - A legal way to settle contractual disputes by which one party agrees to
accept less than the amount due as full payment
actual authority - The real power a principal gives to an agent
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
bill of sale - Formal evidence of ownership
breach of contract - When one party to a contract fails to perform the duties spelled out by the
contract
burglary - Breaking and entering a house or other structure to commit a felony
capacity - The legal ability to enter into a contract
carrier - A business that transports persons, goods, or both
certificate of incorporation - A corporation's official authorization to do business in a state
Chapter 11 bankruptcy - A type of bankruptcy that allows businesses to reorganize their financial
affairs and still remain in business
CORRECT
acceptance - The second party's unqualified willingness to go along with the first party's proposal
accord and satisfaction - A legal way to settle contractual disputes by which one party agrees to
accept less than the amount due as full payment
actual authority - The real power a principal gives to an agent
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
bill of sale - Formal evidence of ownership
breach of contract - When one party to a contract fails to perform the duties spelled out by the
contract
burglary - Breaking and entering a house or other structure to commit a felony
capacity - The legal ability to enter into a contract
carrier - A business that transports persons, goods, or both
certificate of incorporation - A corporation's official authorization to do business in a state
Chapter 11 bankruptcy - A type of bankruptcy that allows businesses to reorganize their financial
affairs and still remain in business
