FBLA Business Law Practice Exam
FBLA BUSINESS LAW PRACTICE EXAM NEWEST EXAM COMPLETE
200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW VERSION!!
1. A company advertised a laptop for $500, but a customer placed an order and
received an invoice for $5,000 due to a typo. Which is true?
A. The customer can demand the laptop at $500.
B. The contract is enforceable at $5,000.
C. The contract may be void due to unilateral mistake.
D. The company must offer a discount.
Correct Answer: C
Explanation: A unilateral mistake (obvious typo) may allow the company to void
the contract.
2. An employee steals confidential client data. The employer discovers this. What
legal claim is most likely?
A. Breach of contract
B. Conversion or misappropriation
C. Negligence
D. Libel
Correct Answer: B
Explanation: Misappropriation or conversion applies to unauthorized use or theft
of property.
3. A company sends an offer to a vendor that says “accept by email within 3 days.”
The vendor mails a response on day 2. When is the contract formed?
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, FBLA Business Law Practice Exam
A. When mailed
B. When received
C. When opened
D. No contract formed
Correct Answer: A
Explanation: Under the mailbox rule, acceptance is effective when dispatched
properly.
4. A restaurant fails to serve food on time, and the customer slips and is injured
while waiting. Which legal doctrine applies?
A. Strict liability
B. Negligence
C. Breach of contract
D. Fraud
Correct Answer: B
Explanation: Negligence arises from failure to exercise reasonable care leading to
injury.
5. An employee signs a non-compete agreement preventing them from working
for competitors for 5 years. What is likely?
A. Always enforceable
B. Never enforceable
C. Enforceable if reasonable in time, scope, and geography
D. Enforceable only in the first year
Correct Answer: C
Explanation: Courts enforce non-competes that are reasonable in duration,
geography, and business scope.
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, FBLA Business Law Practice Exam
6. A supplier delivers defective goods. The buyer inspects immediately and rejects
them. What principle applies?
A. Acceptance of contract
B. Perfect tender rule
C. Doctrine of substantial performance
D. Promissory estoppel
Correct Answer: B
Explanation: Under the UCC, buyers can reject goods that fail to conform exactly
to the contract.
7. A business emails an offer, but the recipient does not respond. Later, the sender
withdraws it. Is there a contract?
A. Yes, a contract formed automatically.
B. No, because there was no acceptance.
C. Yes, because email counts as delivery.
D. No, unless the recipient saw the email.
Correct Answer: B
Explanation: A contract requires acceptance; silence is not acceptance unless
specified.
8. A contractor fails to complete work on time, but the delay does not cause
damages. What is the legal outcome?
A. Breach of contract with full damages
B. Breach of contract with nominal damages
C. No breach
D. Punitive damages
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, FBLA Business Law Practice Exam
Correct Answer: B
Explanation: Nominal damages apply when a breach occurs but no actual loss
results.
9. A company promises a bonus for hitting a sales target. An employee relies on it
but misses the target due to circumstances beyond control. Which principle
protects the employee?
A. Promissory estoppel
B. Consideration
C. Duress
D. Statute of Frauds
Correct Answer: A
Explanation: Promissory estoppel can apply if someone reasonably relies on a
promise to their detriment.
10. An employee uses company resources for personal gain. The employer
discovers it. Which legal action applies?
A. Breach of fiduciary duty
B. Negligence
C. Strict liability
D. Defamation
Correct Answer: A
Explanation: Employees owe fiduciary duties; misuse of resources breaches that
duty.
11. A software company includes “clickwrap” agreements in downloads. These are
generally:
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FBLA BUSINESS LAW PRACTICE EXAM NEWEST EXAM COMPLETE
200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW VERSION!!
1. A company advertised a laptop for $500, but a customer placed an order and
received an invoice for $5,000 due to a typo. Which is true?
A. The customer can demand the laptop at $500.
B. The contract is enforceable at $5,000.
C. The contract may be void due to unilateral mistake.
D. The company must offer a discount.
Correct Answer: C
Explanation: A unilateral mistake (obvious typo) may allow the company to void
the contract.
2. An employee steals confidential client data. The employer discovers this. What
legal claim is most likely?
A. Breach of contract
B. Conversion or misappropriation
C. Negligence
D. Libel
Correct Answer: B
Explanation: Misappropriation or conversion applies to unauthorized use or theft
of property.
3. A company sends an offer to a vendor that says “accept by email within 3 days.”
The vendor mails a response on day 2. When is the contract formed?
1|Page
, FBLA Business Law Practice Exam
A. When mailed
B. When received
C. When opened
D. No contract formed
Correct Answer: A
Explanation: Under the mailbox rule, acceptance is effective when dispatched
properly.
4. A restaurant fails to serve food on time, and the customer slips and is injured
while waiting. Which legal doctrine applies?
A. Strict liability
B. Negligence
C. Breach of contract
D. Fraud
Correct Answer: B
Explanation: Negligence arises from failure to exercise reasonable care leading to
injury.
5. An employee signs a non-compete agreement preventing them from working
for competitors for 5 years. What is likely?
A. Always enforceable
B. Never enforceable
C. Enforceable if reasonable in time, scope, and geography
D. Enforceable only in the first year
Correct Answer: C
Explanation: Courts enforce non-competes that are reasonable in duration,
geography, and business scope.
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, FBLA Business Law Practice Exam
6. A supplier delivers defective goods. The buyer inspects immediately and rejects
them. What principle applies?
A. Acceptance of contract
B. Perfect tender rule
C. Doctrine of substantial performance
D. Promissory estoppel
Correct Answer: B
Explanation: Under the UCC, buyers can reject goods that fail to conform exactly
to the contract.
7. A business emails an offer, but the recipient does not respond. Later, the sender
withdraws it. Is there a contract?
A. Yes, a contract formed automatically.
B. No, because there was no acceptance.
C. Yes, because email counts as delivery.
D. No, unless the recipient saw the email.
Correct Answer: B
Explanation: A contract requires acceptance; silence is not acceptance unless
specified.
8. A contractor fails to complete work on time, but the delay does not cause
damages. What is the legal outcome?
A. Breach of contract with full damages
B. Breach of contract with nominal damages
C. No breach
D. Punitive damages
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, FBLA Business Law Practice Exam
Correct Answer: B
Explanation: Nominal damages apply when a breach occurs but no actual loss
results.
9. A company promises a bonus for hitting a sales target. An employee relies on it
but misses the target due to circumstances beyond control. Which principle
protects the employee?
A. Promissory estoppel
B. Consideration
C. Duress
D. Statute of Frauds
Correct Answer: A
Explanation: Promissory estoppel can apply if someone reasonably relies on a
promise to their detriment.
10. An employee uses company resources for personal gain. The employer
discovers it. Which legal action applies?
A. Breach of fiduciary duty
B. Negligence
C. Strict liability
D. Defamation
Correct Answer: A
Explanation: Employees owe fiduciary duties; misuse of resources breaches that
duty.
11. A software company includes “clickwrap” agreements in downloads. These are
generally:
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