7/17/25, 8:06
AM
BUSINESS LAW EXAM ACTUAL QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED GRADED A++ 2025/2026
Terms in this set (200)
Royal Properties, Inc., mails a flyer to select B
firms, a proposal for a building for sale with
definite terms that invited acceptance.
Standard Manufacturing Company
responds by saying, "We accept your offer
under your terms." Between Royal and
Standard, there is Select one:
a. a contract for the sale of the building.
b. a possible contract depending on all
facts and circumstances.
c. a contract to negotiate a sale of the
building.
d. no contract.
Elle is an agent for Fresh Food B
Corporation. Elle makes an innocent
misrepresentation when entering into a
https://quizlet.com/20480421/business-law- 1/80
flash-cards/
,7/17/25, 8:06
AM
contract on behalf of Fresh with Gala
Grocery Stores, Inc. Gala
Select one:
a. is estopped from performing the
contract.
b. may rescind the contract.
c. must perform the contract.
d. must ratify the contract.
https://quizlet.com/20480421/business-law- 2/80
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,7/17/25, 8:06
AM
If TV Inc. hires Y to True
do weather reports
on a per day basis,
does not withhold
taxes or provide
benefits but
controls the
location and
hours,Y will likely
be not found to be
an employee.
Selec
t
one:
True
False
Joyce works for Kappa C
Services
Corporation as an
independent
contractor, and not
as an employee, if
Select one:
a. Joyce says that
she works as an
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, 7/17/25, 8:06
AM
independent
contractor.
b. Joyce works on a
permanent basis.
c. Kappa does not
control Joyces work.
d. Kappa withholds
taxes from its
payments to Joyce.
Only an agent should True
require the right of
indemnification in an
an agency agreement.
Select one:
Tr
u
e
Fa
ls
e
When an agent False
enters into a contract
on behalf of a
principal, the
principal must
ratify the contract
https://quizlet.com/20480421/business-law- 4/80
flash-cards/
AM
BUSINESS LAW EXAM ACTUAL QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED GRADED A++ 2025/2026
Terms in this set (200)
Royal Properties, Inc., mails a flyer to select B
firms, a proposal for a building for sale with
definite terms that invited acceptance.
Standard Manufacturing Company
responds by saying, "We accept your offer
under your terms." Between Royal and
Standard, there is Select one:
a. a contract for the sale of the building.
b. a possible contract depending on all
facts and circumstances.
c. a contract to negotiate a sale of the
building.
d. no contract.
Elle is an agent for Fresh Food B
Corporation. Elle makes an innocent
misrepresentation when entering into a
https://quizlet.com/20480421/business-law- 1/80
flash-cards/
,7/17/25, 8:06
AM
contract on behalf of Fresh with Gala
Grocery Stores, Inc. Gala
Select one:
a. is estopped from performing the
contract.
b. may rescind the contract.
c. must perform the contract.
d. must ratify the contract.
https://quizlet.com/20480421/business-law- 2/80
flash-cards/
,7/17/25, 8:06
AM
If TV Inc. hires Y to True
do weather reports
on a per day basis,
does not withhold
taxes or provide
benefits but
controls the
location and
hours,Y will likely
be not found to be
an employee.
Selec
t
one:
True
False
Joyce works for Kappa C
Services
Corporation as an
independent
contractor, and not
as an employee, if
Select one:
a. Joyce says that
she works as an
https://quizlet.com/20480421/business-law- 3/80
flash-cards/
, 7/17/25, 8:06
AM
independent
contractor.
b. Joyce works on a
permanent basis.
c. Kappa does not
control Joyces work.
d. Kappa withholds
taxes from its
payments to Joyce.
Only an agent should True
require the right of
indemnification in an
an agency agreement.
Select one:
Tr
u
e
Fa
ls
e
When an agent False
enters into a contract
on behalf of a
principal, the
principal must
ratify the contract
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flash-cards/
