WGU C713 BUSINESS LAW QUESTIONS AND ANSWERS
Absolute privilege - CORRECT ANSWER✅✅✅A witness testifying a court or legislature may never be
sued for defamation
Acceptance - CORRECT ANSWER✅✅✅Retention of the collateral by a secured party as full or partial
satisfaction of a debt
Accepts - CORRECT ANSWER✅✅✅To sign a draft
Accession - CORRECT ANSWER✅✅✅Occurs when one person uses labor, materials or both to add
value to personal property belonging to another person
Accommodated Party - CORRECT ANSWER✅✅✅Someone who receives a benefit from an
accommodation party
Accommodation Party - CORRECT ANSWER✅✅✅Someone other than an issuer, acceptor, or
indorser, who adds their signature to an instrument for the purpose of being liable on it.
Accord and satisfaction - CORRECT ANSWER✅✅✅A completed agreement to settle a debt for less
than the sum claimed.
Accredited investors - CORRECT ANSWER✅✅✅Institutions or wealthy individuals. To qualify
individuals must have a net worth of more than $1 Million or an annual income of more than $200,000
Activist investor - CORRECT ANSWER✅✅✅A shareholder with a large block of stock whose goal is to
influence management decisions and strategic direction
Additional terms - CORRECT ANSWER✅✅✅Terms that raise issues not covered in the offer.
Adhesion contracts - CORRECT ANSWER✅✅✅Standard form contracts pepared by one party and
presented to the other on a "take it or leave it" basis
,Adjudicate - CORRECT ANSWER✅✅✅To hold a formal hearing about an issue and decide it.
Administrative Law judge - CORRECT ANSWER✅✅✅An agency employee who acts as an impartial
decision maker
Adoption - CORRECT ANSWER✅✅✅When a corporation accepts legal responsibility for a contract
Affirm - CORRECT ANSWER✅✅✅To allow the decision to stand
Affirmed - CORRECT ANSWER✅✅✅Permitted to stand
After-acquired property - CORRECT ANSWER✅✅✅Items that the debtor obtains after the parties
have made their security agreement.
Agent - CORRECT ANSWER✅✅✅In an agency relationship, the person who is acting on behalf of a
principal
Agreement on Trade Related Aspects of Intellectual Property (TRIPs) - CORRECT ANSWER✅✅✅A
treaty on intellectual property
Alternative Dispute Resolution - CORRECT ANSWER✅✅✅Any other formal or informal process used
to settle disputes without resorting to trial.
Ambiguity - CORRECT ANSWER✅✅✅When a provision in a contract is unclear by accident.
Annual Report - CORRECT ANSWER✅✅✅A document that the SEC requires public companies to
provide to their shareholders each year.
Annuities - CORRECT ANSWER✅✅✅Provide payment to a beneficiary during his lifetime
, Antitakeover devices - CORRECT ANSWER✅✅✅Defensive measures to protect against a hostile
takeover
Appeals Court - CORRECT ANSWER✅✅✅Higher courts that review the trial record to see if the court
made errors of law
Appellant - CORRECT ANSWER✅✅✅The party filing the appeal
Appellee - CORRECT ANSWER✅✅✅The party opposing the appeal
Approved intermediary - CORRECT ANSWER✅✅✅A broker or website that is registered with the SEC
Arbitration - CORRECT ANSWER✅✅✅A binding process of resolving legal disputes by submitting
them to a neutral third party
Arson - CORRECT ANSWER✅✅✅The malicious use of fire explosives to damage or destroy real
estate or personal property
Artisan's lien - CORRECT ANSWER✅✅✅A security interest in personal property
Assult - CORRECT ANSWER✅✅✅An act that makes a person reasonably fear an imminent battery
Assignment - CORRECT ANSWER✅✅✅Transferring contract rights
Assignment of rights - CORRECT ANSWER✅✅✅A transfer of benefits under a contract to another
person.
Attachment - CORRECT ANSWER✅✅✅A three-step process that creates an enforceable security
interest
Absolute privilege - CORRECT ANSWER✅✅✅A witness testifying a court or legislature may never be
sued for defamation
Acceptance - CORRECT ANSWER✅✅✅Retention of the collateral by a secured party as full or partial
satisfaction of a debt
Accepts - CORRECT ANSWER✅✅✅To sign a draft
Accession - CORRECT ANSWER✅✅✅Occurs when one person uses labor, materials or both to add
value to personal property belonging to another person
Accommodated Party - CORRECT ANSWER✅✅✅Someone who receives a benefit from an
accommodation party
Accommodation Party - CORRECT ANSWER✅✅✅Someone other than an issuer, acceptor, or
indorser, who adds their signature to an instrument for the purpose of being liable on it.
Accord and satisfaction - CORRECT ANSWER✅✅✅A completed agreement to settle a debt for less
than the sum claimed.
Accredited investors - CORRECT ANSWER✅✅✅Institutions or wealthy individuals. To qualify
individuals must have a net worth of more than $1 Million or an annual income of more than $200,000
Activist investor - CORRECT ANSWER✅✅✅A shareholder with a large block of stock whose goal is to
influence management decisions and strategic direction
Additional terms - CORRECT ANSWER✅✅✅Terms that raise issues not covered in the offer.
Adhesion contracts - CORRECT ANSWER✅✅✅Standard form contracts pepared by one party and
presented to the other on a "take it or leave it" basis
,Adjudicate - CORRECT ANSWER✅✅✅To hold a formal hearing about an issue and decide it.
Administrative Law judge - CORRECT ANSWER✅✅✅An agency employee who acts as an impartial
decision maker
Adoption - CORRECT ANSWER✅✅✅When a corporation accepts legal responsibility for a contract
Affirm - CORRECT ANSWER✅✅✅To allow the decision to stand
Affirmed - CORRECT ANSWER✅✅✅Permitted to stand
After-acquired property - CORRECT ANSWER✅✅✅Items that the debtor obtains after the parties
have made their security agreement.
Agent - CORRECT ANSWER✅✅✅In an agency relationship, the person who is acting on behalf of a
principal
Agreement on Trade Related Aspects of Intellectual Property (TRIPs) - CORRECT ANSWER✅✅✅A
treaty on intellectual property
Alternative Dispute Resolution - CORRECT ANSWER✅✅✅Any other formal or informal process used
to settle disputes without resorting to trial.
Ambiguity - CORRECT ANSWER✅✅✅When a provision in a contract is unclear by accident.
Annual Report - CORRECT ANSWER✅✅✅A document that the SEC requires public companies to
provide to their shareholders each year.
Annuities - CORRECT ANSWER✅✅✅Provide payment to a beneficiary during his lifetime
, Antitakeover devices - CORRECT ANSWER✅✅✅Defensive measures to protect against a hostile
takeover
Appeals Court - CORRECT ANSWER✅✅✅Higher courts that review the trial record to see if the court
made errors of law
Appellant - CORRECT ANSWER✅✅✅The party filing the appeal
Appellee - CORRECT ANSWER✅✅✅The party opposing the appeal
Approved intermediary - CORRECT ANSWER✅✅✅A broker or website that is registered with the SEC
Arbitration - CORRECT ANSWER✅✅✅A binding process of resolving legal disputes by submitting
them to a neutral third party
Arson - CORRECT ANSWER✅✅✅The malicious use of fire explosives to damage or destroy real
estate or personal property
Artisan's lien - CORRECT ANSWER✅✅✅A security interest in personal property
Assult - CORRECT ANSWER✅✅✅An act that makes a person reasonably fear an imminent battery
Assignment - CORRECT ANSWER✅✅✅Transferring contract rights
Assignment of rights - CORRECT ANSWER✅✅✅A transfer of benefits under a contract to another
person.
Attachment - CORRECT ANSWER✅✅✅A three-step process that creates an enforceable security
interest
