WGU D216 / BUSINESS LAW FOR ACCOUNTANTS / OBJECTIVE
ASSESSMENT STUDY GUIDE / COMPREHENSIVE REVIEW LATEST 2026
1. Introduction to Law and Legal Systems
Sources of Law
• Constitutional Law: Fundamental law derived from the U.S.
Constitution and state constitutions; supreme law of the land
• Statutory Law: Laws enacted by legislative bodies (Congress, state
legislatures, city councils)
• Administrative Law: Rules and regulations created by administrative
agencies (SEC, IRS, EPA)
• Case Law (Common Law): Law created by judicial decisions; follows
doctrine of stare decisis (precedent)
Court Systems
Federal Court System
1. U.S. District Courts: Trial courts with original jurisdiction
2. U.S. Courts of Appeals: 13 circuit courts that review district court
decisions
3. U.S. Supreme Court: Highest court; discretionary jurisdiction via writ
of certiorari
State Court System
• Trial courts (various names by state)
• Intermediate appellate courts (in most states)
• State Supreme Court (highest state court)
,2. Contract Law
Elements of a Valid Contract
4. Offer: Clear, definite proposal made with intent to create legal obligation
5. Acceptance: Unqualified agreement to terms of offer (mirror image rule
under common law)
6. Consideration: Bargained-for exchange; something of legal value given
by each party
7. Capacity: Legal ability to enter contract (age, mental competence,
sobriety)
8. Legality: Contract purpose must be legal and not against public policy
Contract Classifications
Type Description
Bilateral Exchange of promises (most
common type)
Unilateral Promise in exchange for
performance
Express Stated in words (oral or written)
Implied Formed by conduct or
circumstances
Executed Fully performed by both parties
Executory Performance still owed by one or
both parties
Statute of Frauds
Certain contracts must be in writing to be enforceable:
• Contracts for the sale of land or interests in land
• Contracts that cannot be performed within one year
• Promises to answer for the debt of another (suretyship)
• Contracts for the sale of goods $500 or more (UCC § 2-201)
• Prenuptial agreements
, 3. Uniform Commercial Code (UCC)
UCC Article 2: Sales of Goods
Key Differences from Common Law:
Issue Common Law UCC Article 2
Acceptance Must match offer Additional terms may
exactly (mirror image be included (§ 2-207)
rule)
Consideration for Required Not required (§ 2-209)
modification
Firm offers Revocable unless Irrevocable for stated
supported by period up to 3 months
consideration (§ 2-205)
Warranties Under the UCC
Express Warranties (§ 2-313)
• Created by affirmations of fact or promises
• Descriptions of goods
• Samples or models
Implied Warranties
• Merchantability (§ 2-314): Goods are fit for ordinary purposes; applies
only when seller is a merchant
• Fitness for Particular Purpose (§ 2-315): Goods are fit for buyer's
specific purpose when seller knows buyer's purpose and buyer relies on
seller's expertise
ASSESSMENT STUDY GUIDE / COMPREHENSIVE REVIEW LATEST 2026
1. Introduction to Law and Legal Systems
Sources of Law
• Constitutional Law: Fundamental law derived from the U.S.
Constitution and state constitutions; supreme law of the land
• Statutory Law: Laws enacted by legislative bodies (Congress, state
legislatures, city councils)
• Administrative Law: Rules and regulations created by administrative
agencies (SEC, IRS, EPA)
• Case Law (Common Law): Law created by judicial decisions; follows
doctrine of stare decisis (precedent)
Court Systems
Federal Court System
1. U.S. District Courts: Trial courts with original jurisdiction
2. U.S. Courts of Appeals: 13 circuit courts that review district court
decisions
3. U.S. Supreme Court: Highest court; discretionary jurisdiction via writ
of certiorari
State Court System
• Trial courts (various names by state)
• Intermediate appellate courts (in most states)
• State Supreme Court (highest state court)
,2. Contract Law
Elements of a Valid Contract
4. Offer: Clear, definite proposal made with intent to create legal obligation
5. Acceptance: Unqualified agreement to terms of offer (mirror image rule
under common law)
6. Consideration: Bargained-for exchange; something of legal value given
by each party
7. Capacity: Legal ability to enter contract (age, mental competence,
sobriety)
8. Legality: Contract purpose must be legal and not against public policy
Contract Classifications
Type Description
Bilateral Exchange of promises (most
common type)
Unilateral Promise in exchange for
performance
Express Stated in words (oral or written)
Implied Formed by conduct or
circumstances
Executed Fully performed by both parties
Executory Performance still owed by one or
both parties
Statute of Frauds
Certain contracts must be in writing to be enforceable:
• Contracts for the sale of land or interests in land
• Contracts that cannot be performed within one year
• Promises to answer for the debt of another (suretyship)
• Contracts for the sale of goods $500 or more (UCC § 2-201)
• Prenuptial agreements
, 3. Uniform Commercial Code (UCC)
UCC Article 2: Sales of Goods
Key Differences from Common Law:
Issue Common Law UCC Article 2
Acceptance Must match offer Additional terms may
exactly (mirror image be included (§ 2-207)
rule)
Consideration for Required Not required (§ 2-209)
modification
Firm offers Revocable unless Irrevocable for stated
supported by period up to 3 months
consideration (§ 2-205)
Warranties Under the UCC
Express Warranties (§ 2-313)
• Created by affirmations of fact or promises
• Descriptions of goods
• Samples or models
Implied Warranties
• Merchantability (§ 2-314): Goods are fit for ordinary purposes; applies
only when seller is a merchant
• Fitness for Particular Purpose (§ 2-315): Goods are fit for buyer's
specific purpose when seller knows buyer's purpose and buyer relies on
seller's expertise
