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FBLA Business Law 2026 | Actual
Exam Questions And Answers
acceptance - correct-answer -The second party's unqualified willingness to go
along with the first party's proposal
accord and satisfaction - correct-answer -A legal way to settle contractual disputes
by which one party agrees to accept less than the amount due as full payment
actual authority - correct-answer -The real power a principal gives to an agent
actual notice - correct-answer -A formal notice given directly to a party, usually
using certified mail with a receipt
adhesion contract - correct-answer -A take-it-or-leave-it offer made by a party
who holds most of the power in a bargaining session
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administrative law - correct-answer -The body of rules created by government
agencies
adultery - correct-answer -When one spouse has sexual relations with someone
outside of marriage
affinity - correct-answer -Related by marriage
agency - correct-answer -A type of working relationship in which one person
represents another person in a business transaction with a third party
agency by estoppel - correct-answer -When the principal's actions lead the third
party to believe that the agent is working for the principal
agent - correct-answer -The person who has been authorized to do the work
agent's agent - correct-answer -An agent who is appointed by another agent
without the principal's authority to do so
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alimony - correct-answer -An allowance for support paid to one person by the
former spouse in a divorce
alternative dispute resolution (ADR) - correct-answer -Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
annual percentage rate (APR) - correct-answer -The true interest rate of a loan
annulment - correct-answer -A declaration by the court that a marriage was never
valid
apparent authority - correct-answer -Authority that a third party believes an agent
has while acting on behalf of the principal
appellate court - correct-answer -The U.S. courts of appeals in the federal system;
hears appeals and reviews cases from the lower courts
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arraignment - correct-answer -A formal hearing during which the defendant is
read the indictment or information and is asked to plead guilty or not guilty
arrest - correct-answer -Occurs when a person is legally deprived of his or her
freedom
articles of incorporation - correct-answer -A legal document filed with the state to
establish a corporation
assault - correct-answer -Attempt to commit a battery
asset acquisition - correct-answer -When one corporation agrees to purchase the
assets, such as property, buildings, and equipment, of a second corporation
assignment - correct-answer -The transfer of a right under contract
assumption of risk - correct-answer -A defense against negligence that is raised
when the plaintiff knew of the risk and still took the chance of being injured
FBLA Business Law 2026 | Actual
Exam Questions And Answers
acceptance - correct-answer -The second party's unqualified willingness to go
along with the first party's proposal
accord and satisfaction - correct-answer -A legal way to settle contractual disputes
by which one party agrees to accept less than the amount due as full payment
actual authority - correct-answer -The real power a principal gives to an agent
actual notice - correct-answer -A formal notice given directly to a party, usually
using certified mail with a receipt
adhesion contract - correct-answer -A take-it-or-leave-it offer made by a party
who holds most of the power in a bargaining session
,2|Page
administrative law - correct-answer -The body of rules created by government
agencies
adultery - correct-answer -When one spouse has sexual relations with someone
outside of marriage
affinity - correct-answer -Related by marriage
agency - correct-answer -A type of working relationship in which one person
represents another person in a business transaction with a third party
agency by estoppel - correct-answer -When the principal's actions lead the third
party to believe that the agent is working for the principal
agent - correct-answer -The person who has been authorized to do the work
agent's agent - correct-answer -An agent who is appointed by another agent
without the principal's authority to do so
,3|Page
alimony - correct-answer -An allowance for support paid to one person by the
former spouse in a divorce
alternative dispute resolution (ADR) - correct-answer -Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
annual percentage rate (APR) - correct-answer -The true interest rate of a loan
annulment - correct-answer -A declaration by the court that a marriage was never
valid
apparent authority - correct-answer -Authority that a third party believes an agent
has while acting on behalf of the principal
appellate court - correct-answer -The U.S. courts of appeals in the federal system;
hears appeals and reviews cases from the lower courts
, 4|Page
arraignment - correct-answer -A formal hearing during which the defendant is
read the indictment or information and is asked to plead guilty or not guilty
arrest - correct-answer -Occurs when a person is legally deprived of his or her
freedom
articles of incorporation - correct-answer -A legal document filed with the state to
establish a corporation
assault - correct-answer -Attempt to commit a battery
asset acquisition - correct-answer -When one corporation agrees to purchase the
assets, such as property, buildings, and equipment, of a second corporation
assignment - correct-answer -The transfer of a right under contract
assumption of risk - correct-answer -A defense against negligence that is raised
when the plaintiff knew of the risk and still took the chance of being injured
