WGU Business Law for Accountants - D216
Questions With Verified Answers
"cooling-off" laws - Laws that allow buyers of goods sold in certain transactions to
cancel their contracts within three business days.
14th Amendment - passed in 1868 after the Civil War, provides, in part, that "[n]o State
shall . . . deprive any person of life, liberty, or property, without due process of law."
absolute promises - They must be performed, or the parties promising the acts will be in
breach of contract.
Acceptance - In contract law, the offeree's indication to the offeror that the offeree
agrees to be bound by the terms of the offeror's proposal.
accord - a contract to perform some act to satisfy an existing contractual duty that is not
yet discharged
accord and satisfaction - An agreement for payment (or other performance) between
two parties, one of whom has a right of action against the other. After the payment has
been accepted or other performance has been made, the "accord and satisfaction" is
complete, and the obligation is discharged.
accredited investor - In the context of securities offerings, sophisticated investors, such
as banks, insurance companies, investment companies, the issuer's executive officers
and directors, and persons whose income or net worth exceeds certain limits.
action at law - File a complaint, jury or judge, judgement, monetary damages or property
action in equity - File a petition, judge, decree, injunction, specific performance, or
rescission
adequate protection doctrine - In bankruptcy law, a doctrine that protects secured
creditors from losing their security as a result of an automatic stay. In certain
circumstances, the bankruptcy court may provide adequate protection by requiring the
debtor or trustee to pay the creditor or provide additional guaranties to protect the
creditor against the losses suffered by the creditor as a result of the stay.
,administrative agency - A federal or state government agency created by the legislature
to perform a specific function, such as to make and enforce rules pertaining to the
environment.
agreement - A meeting of two or more minds in regard to the terms of a contract;
usually broken down into two events—an offer by one party to form a contract, and an
acceptance of the offer by the person to whom the offer is made.
alien corporation - A corporation formed in another country but doing business in the
United States.
America Invents Act - 2011- the first person to file an application for a patent on a
product or process will receive patent protection. In addition, the new law established a
nine-month limit for challenging a patent on any ground.
anticipatory repudiation - An assertion or action by a party indicating that he or she will
not perform an obligation that he or she is contractually obligated to perform at a future
time.
apparent authority - Authority that is only apparent, not real. An agent's apparent
authority arises when the principal causes a third party to believe that the agent has
authority, even though she or he does not.
appellant - The party who takes an appeal from one court to another.
appellee - The party against whom an appeal is taken—that is, the party who opposes
setting aside or reversing the judgment.
articles of incorporation - The document that is filed with the appropriate state official,
usually the secretary of state, when a business is incorporated and that contains basic
information about the corporation.
articles of organization - The document that is filed with the appropriate state official,
usually the secretary of state, when a limited liability company is formed.
articles of partnership - A written agreement that sets forth each partner's rights and
obligations with respect to the partnership.
artisan's lien - A possessory lien given to a person who has made improvements and
added value to another person's personal property as security for payment for services
performed.
assignment - The act of transferring to another all or part of one's rights arising under a
contract.
, attachment - In the context of judicial liens, a court-ordered seizure and taking into
custody of property prior to the securing of a judgment for a past-due debt.
automatic stay - In bankruptcy proceedings, the suspension of almost all litigation and
other action by creditors against the debtor or the debtor's property. The stay is effective
the moment the debtor files a petition in bankruptcy.
bailment - A situation in which the personal property of one person (a bailor) is
entrusted to another (a bailee), who is obligated to return the bailed property to the
bailor or dispose of it as directed.
bait-and-switch advertising - Advertising a product at an attractive price and then telling
the consumer that the advertised product is not available or is of poor quality and
encouraging her or him to purchase a more expensive item.
bankruptcy trustee - A person appointed by the court to manage the debtor's funds in a
bankruptcy proceeding.
benefit corporation - A type of for-profit corporation, available by statute in a number of
states, that seeks to have a material positive impact on society and the environment.
bilateral contract - A type of contract that arises when a promise is given in exchange
for a promise.
bilateral mistake - A mistake that occurs when both parties to a contract are mistaken
about the same material fact.
bill of lading - A receipt for goods that is signed by a carrier and serves as a contract for
the transportation of the goods
Bill of Rights - The first ten amendments to the U.S. Constitution.
binding authority - Any source of law that a court must follow when deciding a case.
Bonds - A security that evidences a corporate (or government) debt.
breach of contract - The failure, without legal excuse, of a promisor to perform the
obligations of a contract.
breaches - To violate a law, by an act or an omission, or to break a legal obligation that
one owes to another person or to society.
business ethics - Ethics in a business context; a consensus of what constitutes right or
wrong behavior in the world of business and the application of moral principles to
situations that arise in a business setting.
Questions With Verified Answers
"cooling-off" laws - Laws that allow buyers of goods sold in certain transactions to
cancel their contracts within three business days.
14th Amendment - passed in 1868 after the Civil War, provides, in part, that "[n]o State
shall . . . deprive any person of life, liberty, or property, without due process of law."
absolute promises - They must be performed, or the parties promising the acts will be in
breach of contract.
Acceptance - In contract law, the offeree's indication to the offeror that the offeree
agrees to be bound by the terms of the offeror's proposal.
accord - a contract to perform some act to satisfy an existing contractual duty that is not
yet discharged
accord and satisfaction - An agreement for payment (or other performance) between
two parties, one of whom has a right of action against the other. After the payment has
been accepted or other performance has been made, the "accord and satisfaction" is
complete, and the obligation is discharged.
accredited investor - In the context of securities offerings, sophisticated investors, such
as banks, insurance companies, investment companies, the issuer's executive officers
and directors, and persons whose income or net worth exceeds certain limits.
action at law - File a complaint, jury or judge, judgement, monetary damages or property
action in equity - File a petition, judge, decree, injunction, specific performance, or
rescission
adequate protection doctrine - In bankruptcy law, a doctrine that protects secured
creditors from losing their security as a result of an automatic stay. In certain
circumstances, the bankruptcy court may provide adequate protection by requiring the
debtor or trustee to pay the creditor or provide additional guaranties to protect the
creditor against the losses suffered by the creditor as a result of the stay.
,administrative agency - A federal or state government agency created by the legislature
to perform a specific function, such as to make and enforce rules pertaining to the
environment.
agreement - A meeting of two or more minds in regard to the terms of a contract;
usually broken down into two events—an offer by one party to form a contract, and an
acceptance of the offer by the person to whom the offer is made.
alien corporation - A corporation formed in another country but doing business in the
United States.
America Invents Act - 2011- the first person to file an application for a patent on a
product or process will receive patent protection. In addition, the new law established a
nine-month limit for challenging a patent on any ground.
anticipatory repudiation - An assertion or action by a party indicating that he or she will
not perform an obligation that he or she is contractually obligated to perform at a future
time.
apparent authority - Authority that is only apparent, not real. An agent's apparent
authority arises when the principal causes a third party to believe that the agent has
authority, even though she or he does not.
appellant - The party who takes an appeal from one court to another.
appellee - The party against whom an appeal is taken—that is, the party who opposes
setting aside or reversing the judgment.
articles of incorporation - The document that is filed with the appropriate state official,
usually the secretary of state, when a business is incorporated and that contains basic
information about the corporation.
articles of organization - The document that is filed with the appropriate state official,
usually the secretary of state, when a limited liability company is formed.
articles of partnership - A written agreement that sets forth each partner's rights and
obligations with respect to the partnership.
artisan's lien - A possessory lien given to a person who has made improvements and
added value to another person's personal property as security for payment for services
performed.
assignment - The act of transferring to another all or part of one's rights arising under a
contract.
, attachment - In the context of judicial liens, a court-ordered seizure and taking into
custody of property prior to the securing of a judgment for a past-due debt.
automatic stay - In bankruptcy proceedings, the suspension of almost all litigation and
other action by creditors against the debtor or the debtor's property. The stay is effective
the moment the debtor files a petition in bankruptcy.
bailment - A situation in which the personal property of one person (a bailor) is
entrusted to another (a bailee), who is obligated to return the bailed property to the
bailor or dispose of it as directed.
bait-and-switch advertising - Advertising a product at an attractive price and then telling
the consumer that the advertised product is not available or is of poor quality and
encouraging her or him to purchase a more expensive item.
bankruptcy trustee - A person appointed by the court to manage the debtor's funds in a
bankruptcy proceeding.
benefit corporation - A type of for-profit corporation, available by statute in a number of
states, that seeks to have a material positive impact on society and the environment.
bilateral contract - A type of contract that arises when a promise is given in exchange
for a promise.
bilateral mistake - A mistake that occurs when both parties to a contract are mistaken
about the same material fact.
bill of lading - A receipt for goods that is signed by a carrier and serves as a contract for
the transportation of the goods
Bill of Rights - The first ten amendments to the U.S. Constitution.
binding authority - Any source of law that a court must follow when deciding a case.
Bonds - A security that evidences a corporate (or government) debt.
breach of contract - The failure, without legal excuse, of a promisor to perform the
obligations of a contract.
breaches - To violate a law, by an act or an omission, or to break a legal obligation that
one owes to another person or to society.
business ethics - Ethics in a business context; a consensus of what constitutes right or
wrong behavior in the world of business and the application of moral principles to
situations that arise in a business setting.
