DECA Principles Exam Study Questions
And Verified Answers 2025
Discuss the nature of law and the sources of law in the United States. CORRECT
ANSWERS Nature of Law:
Criminal Law - prohibit crimes harming others/property
Civil Law - disputes between people or groups
Constitutional Law - challenging the U.S. Constitution, which is subject to interpretation
by the courts (common law)
Administrative Law - governs duties and powers of U.S. federal agencies
International Law - treaties, trade agreements, etc.
Sources of Law:
The U.S. and state Constitutions contain rights enumerated to citizens as well as
general regulations considered key to society. Laws can also be passed in the form of
statutes by the U.S. Congress ans state legislatures. They can be struck down by the
U.S. and state Supreme Courts if found unconstitutional.
Describe the United States' judicial system. CORRECT ANSWERS The laws of the
United States are upheld by its judicial branch.
Hierarchy of the U.S. Judicial Branch:
1. U.S. Supreme Court
2. Circuit Courts of Appeals
3. District Courts
Describe methods used to protect intellectual property. CORRECT ANSWERS
Intellectual property is a proprietary work/invention of an owner. Owners of IP file
through the U.S. Patent and Trademark Office to protect proprietorship of their work.
When challenged in court, owners of IP must defend the validity of their ownership.
U.S. Patent and Trademark Office Legal Documents:
Patent - government license giving right to exclude others from making, using, or selling
an invention (for a limited time)
Trademark - symbol or word(s) legally registered as representing a company or product
Copyright - exclusive right to print, publish, film, and perform media (and authorize
others to do the same)
Describe legal issues affecting businesses. CORRECT ANSWERS Wrong Termination
Lawsuits - former employee sues if (s)he believes (s)he was unjustly fired
Harassment/Discrimination Cases - employee/customer was harassed or treated
inferiorly due to demographic differences
Immigration Audits - requirement of businesses to file Form I-9 in order to verify
employee eligibility
,IP Issues - disputes over ownership of trademarks, copyrights, and/or patents
Dissatisfied Customers - consumers feel misled and deceived
Identify the basic torts relating to business enterprises. CORRECT ANSWERS Torts are
civil wrongs by or against a business causing harm to its assets - both tangible and
intangible.
Components:
Duty - defendant's obligation of action
Breach of Duty - defendant's transgression of duty
Causation - reason for injury caused by defendant
Injury - damages to plaintiff
Types:
Negligence - unlawful and unintentional
Intentional Tort - unlawful and intentional
Strict Liability - lawful, but resulted in injury
Describe the nature of legally binding contracts. CORRECT ANSWERS Both parties
agree to the terms of a written or spoken contract, or face legal consequences.
Describe the nature of legal procedure. CORRECT ANSWERS The accused, once
indicted, is to face a fair and speedy trial with a jury present and a judge presiding. S/he
has the right to an attorney and is not required to testify as per the Sixth Amendment of
the U.S. Constitution and the Miranda rights.
Discuss the nature of debtor-creditor relationships. CORRECT ANSWERS Debtor-
creditor relationships are when one party (debtor) owes another party (creditor) money.
They can be voluntary (credit card purchases, mortgage payments. etc.) or involuntary
(child support, etc.)
Explain the nature of agency relationships. CORRECT ANSWERS Contract is agreed
upon where an agent acts on behalf of another (the principal) to create legal relations
with a third party.
Discuss the nature of environmental law. CORRECT ANSWERS Environmental law is a
form of legislation that addresses the effects of human activity on the environment.
Discuss the role of administrative law. CORRECT ANSWERS Administrative law
governs the activities of government agencies.
Explain types of business ownership. CORRECT ANSWERS Sole Proprietorship -
owned/run by one individual who receives all profits and is responsible for loss/debt
Partnership - partners agree to cooperate in working toward mutual interests
Corporation - Sells shares in stock market, company is owned by multiple shareholders,
allows for limited liability
,Private LLC - limited liability, no shares of stock
Nonprofit - uses revenue to achieve social goals
Franchise - chain of suppliers providing goods/services
Cooperative/Joint Venture - run/managed by employees
Explain the nature of import/export law. CORRECT ANSWERS In the USA,
import/export law is regulated by the U.S. Customs and Border Protection agency.
These regulations govern what can and cannot be brought in and out of the country.
Describe the nature of customs regulations. CORRECT ANSWERS In the USA,
customs regulations are imposed by the U.S. Customs and Border Protection agency.
They exist to protect the country's economy, people, and environment; and monitor the
flow of goods across international borders.
Identify sources that provide relevant, valid written material. CORRECT ANSWERS
Government publications, reputable news outlets, textbooks, and professional research
papers provide relevant, valid written material. One should verify an author's credentials
to determine credibility.
Extract relevant information from written materials. CORRECT ANSWERS If a piece of
information from written material relates to the topic under discussion and is true, then it
is relevant.
Apply written directions to achieve tasks. CORRECT ANSWERS Directions must be
followed meticulously to achieve tasks.
Analyze company resources to ascertain policies and procedures. CORRECT
ANSWERS Consulting the employee handbook or one's co-workers can ascertain one
of company policies and procedures.
Explain communication techniques that support and encourage a speaker. CORRECT
ANSWERS enthusiasm, open-ended questions, body language, approval, attentive
listening, eye contact, encouragement, energy
Follow oral directions. CORRECT ANSWERS Listen carefully, then execute the steps
as given. After instructions are given, clarify any doubts. If further help is necessary, ask
your supervisor for assistance.
Demonstrate active listening skills. CORRECT ANSWERS Don't slouch, sit up straight,
and exhibit enthusiasm.
Explain the nature of effective verbal communications. CORRECT ANSWERS Effective
verbal communication can be formal or informal, and is when a speaker appears
confident and "in the know." This can influence/persuade the listener.
, Ask relevant questions. CORRECT ANSWERS Questions should be appropriate and
relative to the topic under discussion.
Interpret others' nonverbal cues. CORRECT ANSWERS If the listener appears irritated,
switch topics or end the conversation. If s/he appears attentive or enthusiastic, carry on
and press further.
Provide legitimate responses to inquiries. CORRECT ANSWERS Responses to inquires
should be direct and assertive, while maintaining professionalism. They should also
contain all necessary information.
Give verbal directions. CORRECT ANSWERS Say the directions out loud in an initiative
manner. Include all necessary information. Ask the audience if they have any questions,
and answer clearly and thoroughly.
Employ communication styles appropriate to target audience. CORRECT ANSWERS
Use humor if appropriate, be dramatic/emotional if necessary, be serious when
required, etc.
Defend ideas objectively. CORRECT ANSWERS State evidence to back up your
claims.
Handle telephone calls in a businesslike manner. CORRECT ANSWERS State your
contact information, say "How may I help you?", speak as if it were a real business
meeting
Participate in group discussions. CORRECT ANSWERS Ask relevant questions,
respect the opinions of others, work together with the intention of meeting a goal.
Facilitate group discussions. CORRECT ANSWERS Bring up a problem or topic of
casual conversation and initiate conversation.
Make oral presentations. CORRECT ANSWERS Exhibit assertive/strong posture, tone,
and enunciation and look confident.
Utilize note-taking strategies. CORRECT ANSWERS Use abbreviations, write only the
main ideas, and write questions to be asked.
Organize information. CORRECT ANSWERS Use charts and diagrams to organize
information in a systematic manner.
Select and use appropriate graphic aids. CORRECT ANSWERS Graphic aids should
organize information in a systematic and clear manner (e.g. flow chart - decision
making).
And Verified Answers 2025
Discuss the nature of law and the sources of law in the United States. CORRECT
ANSWERS Nature of Law:
Criminal Law - prohibit crimes harming others/property
Civil Law - disputes between people or groups
Constitutional Law - challenging the U.S. Constitution, which is subject to interpretation
by the courts (common law)
Administrative Law - governs duties and powers of U.S. federal agencies
International Law - treaties, trade agreements, etc.
Sources of Law:
The U.S. and state Constitutions contain rights enumerated to citizens as well as
general regulations considered key to society. Laws can also be passed in the form of
statutes by the U.S. Congress ans state legislatures. They can be struck down by the
U.S. and state Supreme Courts if found unconstitutional.
Describe the United States' judicial system. CORRECT ANSWERS The laws of the
United States are upheld by its judicial branch.
Hierarchy of the U.S. Judicial Branch:
1. U.S. Supreme Court
2. Circuit Courts of Appeals
3. District Courts
Describe methods used to protect intellectual property. CORRECT ANSWERS
Intellectual property is a proprietary work/invention of an owner. Owners of IP file
through the U.S. Patent and Trademark Office to protect proprietorship of their work.
When challenged in court, owners of IP must defend the validity of their ownership.
U.S. Patent and Trademark Office Legal Documents:
Patent - government license giving right to exclude others from making, using, or selling
an invention (for a limited time)
Trademark - symbol or word(s) legally registered as representing a company or product
Copyright - exclusive right to print, publish, film, and perform media (and authorize
others to do the same)
Describe legal issues affecting businesses. CORRECT ANSWERS Wrong Termination
Lawsuits - former employee sues if (s)he believes (s)he was unjustly fired
Harassment/Discrimination Cases - employee/customer was harassed or treated
inferiorly due to demographic differences
Immigration Audits - requirement of businesses to file Form I-9 in order to verify
employee eligibility
,IP Issues - disputes over ownership of trademarks, copyrights, and/or patents
Dissatisfied Customers - consumers feel misled and deceived
Identify the basic torts relating to business enterprises. CORRECT ANSWERS Torts are
civil wrongs by or against a business causing harm to its assets - both tangible and
intangible.
Components:
Duty - defendant's obligation of action
Breach of Duty - defendant's transgression of duty
Causation - reason for injury caused by defendant
Injury - damages to plaintiff
Types:
Negligence - unlawful and unintentional
Intentional Tort - unlawful and intentional
Strict Liability - lawful, but resulted in injury
Describe the nature of legally binding contracts. CORRECT ANSWERS Both parties
agree to the terms of a written or spoken contract, or face legal consequences.
Describe the nature of legal procedure. CORRECT ANSWERS The accused, once
indicted, is to face a fair and speedy trial with a jury present and a judge presiding. S/he
has the right to an attorney and is not required to testify as per the Sixth Amendment of
the U.S. Constitution and the Miranda rights.
Discuss the nature of debtor-creditor relationships. CORRECT ANSWERS Debtor-
creditor relationships are when one party (debtor) owes another party (creditor) money.
They can be voluntary (credit card purchases, mortgage payments. etc.) or involuntary
(child support, etc.)
Explain the nature of agency relationships. CORRECT ANSWERS Contract is agreed
upon where an agent acts on behalf of another (the principal) to create legal relations
with a third party.
Discuss the nature of environmental law. CORRECT ANSWERS Environmental law is a
form of legislation that addresses the effects of human activity on the environment.
Discuss the role of administrative law. CORRECT ANSWERS Administrative law
governs the activities of government agencies.
Explain types of business ownership. CORRECT ANSWERS Sole Proprietorship -
owned/run by one individual who receives all profits and is responsible for loss/debt
Partnership - partners agree to cooperate in working toward mutual interests
Corporation - Sells shares in stock market, company is owned by multiple shareholders,
allows for limited liability
,Private LLC - limited liability, no shares of stock
Nonprofit - uses revenue to achieve social goals
Franchise - chain of suppliers providing goods/services
Cooperative/Joint Venture - run/managed by employees
Explain the nature of import/export law. CORRECT ANSWERS In the USA,
import/export law is regulated by the U.S. Customs and Border Protection agency.
These regulations govern what can and cannot be brought in and out of the country.
Describe the nature of customs regulations. CORRECT ANSWERS In the USA,
customs regulations are imposed by the U.S. Customs and Border Protection agency.
They exist to protect the country's economy, people, and environment; and monitor the
flow of goods across international borders.
Identify sources that provide relevant, valid written material. CORRECT ANSWERS
Government publications, reputable news outlets, textbooks, and professional research
papers provide relevant, valid written material. One should verify an author's credentials
to determine credibility.
Extract relevant information from written materials. CORRECT ANSWERS If a piece of
information from written material relates to the topic under discussion and is true, then it
is relevant.
Apply written directions to achieve tasks. CORRECT ANSWERS Directions must be
followed meticulously to achieve tasks.
Analyze company resources to ascertain policies and procedures. CORRECT
ANSWERS Consulting the employee handbook or one's co-workers can ascertain one
of company policies and procedures.
Explain communication techniques that support and encourage a speaker. CORRECT
ANSWERS enthusiasm, open-ended questions, body language, approval, attentive
listening, eye contact, encouragement, energy
Follow oral directions. CORRECT ANSWERS Listen carefully, then execute the steps
as given. After instructions are given, clarify any doubts. If further help is necessary, ask
your supervisor for assistance.
Demonstrate active listening skills. CORRECT ANSWERS Don't slouch, sit up straight,
and exhibit enthusiasm.
Explain the nature of effective verbal communications. CORRECT ANSWERS Effective
verbal communication can be formal or informal, and is when a speaker appears
confident and "in the know." This can influence/persuade the listener.
, Ask relevant questions. CORRECT ANSWERS Questions should be appropriate and
relative to the topic under discussion.
Interpret others' nonverbal cues. CORRECT ANSWERS If the listener appears irritated,
switch topics or end the conversation. If s/he appears attentive or enthusiastic, carry on
and press further.
Provide legitimate responses to inquiries. CORRECT ANSWERS Responses to inquires
should be direct and assertive, while maintaining professionalism. They should also
contain all necessary information.
Give verbal directions. CORRECT ANSWERS Say the directions out loud in an initiative
manner. Include all necessary information. Ask the audience if they have any questions,
and answer clearly and thoroughly.
Employ communication styles appropriate to target audience. CORRECT ANSWERS
Use humor if appropriate, be dramatic/emotional if necessary, be serious when
required, etc.
Defend ideas objectively. CORRECT ANSWERS State evidence to back up your
claims.
Handle telephone calls in a businesslike manner. CORRECT ANSWERS State your
contact information, say "How may I help you?", speak as if it were a real business
meeting
Participate in group discussions. CORRECT ANSWERS Ask relevant questions,
respect the opinions of others, work together with the intention of meeting a goal.
Facilitate group discussions. CORRECT ANSWERS Bring up a problem or topic of
casual conversation and initiate conversation.
Make oral presentations. CORRECT ANSWERS Exhibit assertive/strong posture, tone,
and enunciation and look confident.
Utilize note-taking strategies. CORRECT ANSWERS Use abbreviations, write only the
main ideas, and write questions to be asked.
Organize information. CORRECT ANSWERS Use charts and diagrams to organize
information in a systematic manner.
Select and use appropriate graphic aids. CORRECT ANSWERS Graphic aids should
organize information in a systematic and clear manner (e.g. flow chart - decision
making).
