WGU D216 – Business Law for Accountants Objective
Assessment (OA) Exam Questions & Answers | Latest
2026/2027 Update | Grade A+ - WGU
1. Which element is required for a valid contract?
A. Written agreement
B. Notarization
C. Consideration
D. Witness signature
Answer: C. Consideration
2. Which contract is void?
A. Contract with a minor
B. Contract obtained by fraud
C. Contract for illegal activity
D. Contract entered under duress
Answer: C. Contract for illegal activity
3. What is the primary purpose of the Uniform Commercial Code (UCC)?
A. Regulate employment law
B. Govern real estate transactions
C. Standardize commercial transactions
D. Control corporate taxation
Answer: C. Standardize commercial transactions
4. The UCC primarily applies to:
A. Real property
B. Services
,C. Goods
D. Employment contracts
Answer: C. Goods
6. A contract entered into by a minor is generally:
A. Void
B. Voidable
C. Illegal
D. Unenforceable in all cases
Answer: B. Voidable
7. Which term refers to false statements of fact that induce a contract?
A. Duress
B. Mistake
C. Fraud
D. Undue influence
Answer: C. Fraud
8. What is consideration?
A. Written evidence
B. Exchange of value
C. Legal capacity
D. Contract acceptance
Answer: B. Exchange of value
10. A breach of contract occurs when:
A. One party changes their mind
B. One party fails to perform
C. The contract is oral
D. The contract is void
,Answer: B. One party fails to perform
5. Which situation creates an implied contract?
A. A written agreement
B. Oral promise
C. Conduct indicating agreement
D. Court-ordered obligation
Answer: C. Conduct indicating agreement
9. Which contract must be in writing under the Statute of Frauds?
A. Contract completed within one year
B. Sale of goods under $500
C. Real estate contract
D. Employment agreement
Answer: C. Real estate contract
11. What remedy compensates the injured party for actual loss?
A. Punitive damages
B. Nominal damages
C. Compensatory damages
D. Liquidated damages
Answer: C. Compensatory damages
12. Punitive damages are intended to:
A. Compensate losses
B. Punish wrongful conduct
C. Cover court costs
D. Enforce contracts
Answer: B. Punish wrongful conduct
13. Which business structure provides limited liability and pass-through
taxation?
, A. Sole proprietorship
B. General partnership
C. Corporation
D. Limited liability company (LLC)
Answer: D. Limited liability company (LLC)
18. Which agency enforces federal securities laws?
A. IRS
B. FTC C. SEC
D. DOJ
Answer: C. SEC
19. Negligence requires proof of:
A. Intent
B. Duty, breach, causation, and damages
C. Criminal behavior
D. Fraudulent misrepresentation
Answer: B. Duty, breach, causation, and damages
20. Which defense eliminates liability due to voluntary risk?
A. Contributory negligence
B. Comparative negligence
C. Assumption of risk
D. Statute of limitations
Answer: C. Assumption of risk
21. A tort is best defined as:
A. Breach of contract
B. Criminal act
Assessment (OA) Exam Questions & Answers | Latest
2026/2027 Update | Grade A+ - WGU
1. Which element is required for a valid contract?
A. Written agreement
B. Notarization
C. Consideration
D. Witness signature
Answer: C. Consideration
2. Which contract is void?
A. Contract with a minor
B. Contract obtained by fraud
C. Contract for illegal activity
D. Contract entered under duress
Answer: C. Contract for illegal activity
3. What is the primary purpose of the Uniform Commercial Code (UCC)?
A. Regulate employment law
B. Govern real estate transactions
C. Standardize commercial transactions
D. Control corporate taxation
Answer: C. Standardize commercial transactions
4. The UCC primarily applies to:
A. Real property
B. Services
,C. Goods
D. Employment contracts
Answer: C. Goods
6. A contract entered into by a minor is generally:
A. Void
B. Voidable
C. Illegal
D. Unenforceable in all cases
Answer: B. Voidable
7. Which term refers to false statements of fact that induce a contract?
A. Duress
B. Mistake
C. Fraud
D. Undue influence
Answer: C. Fraud
8. What is consideration?
A. Written evidence
B. Exchange of value
C. Legal capacity
D. Contract acceptance
Answer: B. Exchange of value
10. A breach of contract occurs when:
A. One party changes their mind
B. One party fails to perform
C. The contract is oral
D. The contract is void
,Answer: B. One party fails to perform
5. Which situation creates an implied contract?
A. A written agreement
B. Oral promise
C. Conduct indicating agreement
D. Court-ordered obligation
Answer: C. Conduct indicating agreement
9. Which contract must be in writing under the Statute of Frauds?
A. Contract completed within one year
B. Sale of goods under $500
C. Real estate contract
D. Employment agreement
Answer: C. Real estate contract
11. What remedy compensates the injured party for actual loss?
A. Punitive damages
B. Nominal damages
C. Compensatory damages
D. Liquidated damages
Answer: C. Compensatory damages
12. Punitive damages are intended to:
A. Compensate losses
B. Punish wrongful conduct
C. Cover court costs
D. Enforce contracts
Answer: B. Punish wrongful conduct
13. Which business structure provides limited liability and pass-through
taxation?
, A. Sole proprietorship
B. General partnership
C. Corporation
D. Limited liability company (LLC)
Answer: D. Limited liability company (LLC)
18. Which agency enforces federal securities laws?
A. IRS
B. FTC C. SEC
D. DOJ
Answer: C. SEC
19. Negligence requires proof of:
A. Intent
B. Duty, breach, causation, and damages
C. Criminal behavior
D. Fraudulent misrepresentation
Answer: B. Duty, breach, causation, and damages
20. Which defense eliminates liability due to voluntary risk?
A. Contributory negligence
B. Comparative negligence
C. Assumption of risk
D. Statute of limitations
Answer: C. Assumption of risk
21. A tort is best defined as:
A. Breach of contract
B. Criminal act
