FBLA Business Law EXAM STUDY GUIDE
2026/2027 ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. acceptance - ANSWER ✔ The second party's unqualified willingness to go
along with the first party's proposal
2. accord and satisfaction - ANSWER ✔ A legal way to settle contractual
disputes by which one party agrees to accept less than the amount due as full
payment
3. actual authority - ANSWER ✔ The real power a principal gives to an agent
4. actual notice - ANSWER ✔ A formal notice given directly to a party,
usually using certified mail with a receipt
5. adhesion contract - ANSWER ✔ A take-it-or-leave-it offer made by a party
who holds most of the power in a bargaining session
6. administrative law - ANSWER ✔ The body of rules created by government
agencies
7. adultery - ANSWER ✔ When one spouse has sexual relations with
someone outside of marriage
8. affinity - ANSWER ✔ Related by marriage
9. agency - ANSWER ✔ A type of working relationship in which one person
represents another person in a business transaction with a third party
,10.agency by estoppel - ANSWER ✔ When the principal's actions lead the
third party to believe that the agent is working for the principal
11.agent - ANSWER ✔ The person who has been authorized to do the work
12.agent's agent - ANSWER ✔ An agent who is appointed by another agent
without the principal's authority to do so
13.alimony - ANSWER ✔ An allowance for support paid to one person by the
former spouse in a divorce
14.alternative dispute resolution (ADR) - ANSWER ✔ Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
15.annual percentage rate (APR) - ANSWER ✔ The true interest rate of a loan
16.law - ANSWER ✔ A system of rules of conduct established by a country's
government to maintain stability and justice according to the values that are
relevant to that country
17.lease - ANSWER ✔ The contract between a tenant and a landlord
18.lessee - ANSWER ✔ The tenant in a lease
19.lessor - ANSWER ✔ The landlord in a lease
20.license - ANSWER ✔ A temporary, revocable right to the limited use of
another's land
21.lien - ANSWER ✔ A legal claim against another person's property as a
security for a debt or loan to ensure it will be paid
22.limited liability company (LLC) - ANSWER ✔ An entity with the legal
authority to act as a single person distinct from its owners and combines the
best features of a partnership and a corporation
,23.limited liability partnership (LLP) - ANSWER ✔ A registered partnership
in which each partner is not liable for the acts of the other partners
24.limited partnership - ANSWER ✔ A partnership formed by two or more
persons, with one or more general partners and one or more limited partners
25.limited warranty - ANSWER ✔ Any written warranty that does not meet
the requirements of a full warranty
26.majority - ANSWER ✔ The status of reaching the age of adulthood, 18 in
most states
27.maker - ANSWER ✔ The person who promises to pay money in a note
28.manslaughter - ANSWER ✔ Voluntary or involuntary killing of another
person without intending to do so
29.marriage - ANSWER ✔ Defined by most states and the federal government
as the legal union of one man and one woman as husband and wife
30.merger - ANSWER ✔ When two companies join together, with one
company keeping its corporate identity and the other company losing its
corporate identity
31.minor - ANSWER ✔ A person who has not yet reached the age of
adulthood
32.mirror image rule - ANSWER ✔ The terms stated in the acceptance must
exactly mirror or match the terms of the offer
33.Employment-at-Will - ANSWER ✔ Either employer or employee can
terminate the relationship at any lawful time.
34.EEOC - ANSWER ✔ Enforces workplace discrimination laws.
35.Truth in Lending Act (TILA) - ANSWER ✔ Requires disclosure of credit
terms and costs.
, 36.Federal Trade Commission (FTC) - ANSWER ✔ Enforces laws against
deceptive advertising and unfair business practices.
37.Lemon Laws - ANSWER ✔ Protect consumers who purchase defective
vehicles.
38.Magnuson-Moss Warranty Act - ANSWER ✔ Regulates written warranties
on consumer products.
39.Fair Debt Collection Practices Act (FDCPA) - ANSWER ✔ Prohibits
harassment and abuse by debt collectors.
40.Negotiable Instrument - ANSWER ✔ Written, signed, unconditional,
payable to order/bearer; example: check.
41.Insurance Policy - ANSWER ✔ Contract where one party promises
payment for losses in exchange for premiums.
42.Secured Transaction - ANSWER ✔ Debtor pledges collateral to guarantee
repayment of debt.
43.Chapter 7 Bankruptcy - ANSWER ✔ Liquidation of assets to pay creditors.
44.Real Property - ANSWER ✔ Land and anything permanently attached to
it.
45.Personal Property - ANSWER ✔ Movable items or possessions.
46.Deed - ANSWER ✔ Legal document transferring ownership of real
property.
47.Adverse Possession - ANSWER ✔ Legal way to gain ownership of land by
openly occupying it for a statutory period.
48.Zoning Laws - ANSWER ✔ Regulate land use, building types, and
development.
2026/2027 ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. acceptance - ANSWER ✔ The second party's unqualified willingness to go
along with the first party's proposal
2. accord and satisfaction - ANSWER ✔ A legal way to settle contractual
disputes by which one party agrees to accept less than the amount due as full
payment
3. actual authority - ANSWER ✔ The real power a principal gives to an agent
4. actual notice - ANSWER ✔ A formal notice given directly to a party,
usually using certified mail with a receipt
5. adhesion contract - ANSWER ✔ A take-it-or-leave-it offer made by a party
who holds most of the power in a bargaining session
6. administrative law - ANSWER ✔ The body of rules created by government
agencies
7. adultery - ANSWER ✔ When one spouse has sexual relations with
someone outside of marriage
8. affinity - ANSWER ✔ Related by marriage
9. agency - ANSWER ✔ A type of working relationship in which one person
represents another person in a business transaction with a third party
,10.agency by estoppel - ANSWER ✔ When the principal's actions lead the
third party to believe that the agent is working for the principal
11.agent - ANSWER ✔ The person who has been authorized to do the work
12.agent's agent - ANSWER ✔ An agent who is appointed by another agent
without the principal's authority to do so
13.alimony - ANSWER ✔ An allowance for support paid to one person by the
former spouse in a divorce
14.alternative dispute resolution (ADR) - ANSWER ✔ Parties try to resolve
disagreements outside of the usual court system, by mediation, arbitration,
conciliation, and negotiation
15.annual percentage rate (APR) - ANSWER ✔ The true interest rate of a loan
16.law - ANSWER ✔ A system of rules of conduct established by a country's
government to maintain stability and justice according to the values that are
relevant to that country
17.lease - ANSWER ✔ The contract between a tenant and a landlord
18.lessee - ANSWER ✔ The tenant in a lease
19.lessor - ANSWER ✔ The landlord in a lease
20.license - ANSWER ✔ A temporary, revocable right to the limited use of
another's land
21.lien - ANSWER ✔ A legal claim against another person's property as a
security for a debt or loan to ensure it will be paid
22.limited liability company (LLC) - ANSWER ✔ An entity with the legal
authority to act as a single person distinct from its owners and combines the
best features of a partnership and a corporation
,23.limited liability partnership (LLP) - ANSWER ✔ A registered partnership
in which each partner is not liable for the acts of the other partners
24.limited partnership - ANSWER ✔ A partnership formed by two or more
persons, with one or more general partners and one or more limited partners
25.limited warranty - ANSWER ✔ Any written warranty that does not meet
the requirements of a full warranty
26.majority - ANSWER ✔ The status of reaching the age of adulthood, 18 in
most states
27.maker - ANSWER ✔ The person who promises to pay money in a note
28.manslaughter - ANSWER ✔ Voluntary or involuntary killing of another
person without intending to do so
29.marriage - ANSWER ✔ Defined by most states and the federal government
as the legal union of one man and one woman as husband and wife
30.merger - ANSWER ✔ When two companies join together, with one
company keeping its corporate identity and the other company losing its
corporate identity
31.minor - ANSWER ✔ A person who has not yet reached the age of
adulthood
32.mirror image rule - ANSWER ✔ The terms stated in the acceptance must
exactly mirror or match the terms of the offer
33.Employment-at-Will - ANSWER ✔ Either employer or employee can
terminate the relationship at any lawful time.
34.EEOC - ANSWER ✔ Enforces workplace discrimination laws.
35.Truth in Lending Act (TILA) - ANSWER ✔ Requires disclosure of credit
terms and costs.
, 36.Federal Trade Commission (FTC) - ANSWER ✔ Enforces laws against
deceptive advertising and unfair business practices.
37.Lemon Laws - ANSWER ✔ Protect consumers who purchase defective
vehicles.
38.Magnuson-Moss Warranty Act - ANSWER ✔ Regulates written warranties
on consumer products.
39.Fair Debt Collection Practices Act (FDCPA) - ANSWER ✔ Prohibits
harassment and abuse by debt collectors.
40.Negotiable Instrument - ANSWER ✔ Written, signed, unconditional,
payable to order/bearer; example: check.
41.Insurance Policy - ANSWER ✔ Contract where one party promises
payment for losses in exchange for premiums.
42.Secured Transaction - ANSWER ✔ Debtor pledges collateral to guarantee
repayment of debt.
43.Chapter 7 Bankruptcy - ANSWER ✔ Liquidation of assets to pay creditors.
44.Real Property - ANSWER ✔ Land and anything permanently attached to
it.
45.Personal Property - ANSWER ✔ Movable items or possessions.
46.Deed - ANSWER ✔ Legal document transferring ownership of real
property.
47.Adverse Possession - ANSWER ✔ Legal way to gain ownership of land by
openly occupying it for a statutory period.
48.Zoning Laws - ANSWER ✔ Regulate land use, building types, and
development.
