FBLA Business Law 2026 |
Study Guide, Practice
Questions & Exam Review
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Updated 2026 Questions and Answers
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Rationales
Included
,acceptance The second party's unqualified willingness to go along with the first party's proposal
accord and satisfaction A legal way to settle contractual disputes by which one party agrees to accept less
than the amount due as full payment
actual authority The real power a principal gives to an agent
actual notice A formal notice given directly to a party, usually using certified mail with a receipt
adhesion contract A take-it-or-leave-it offer made by a party who holds most of the power in a
bargaining session
administrative law The body of rules created by government agencies
adultery When one spouse has sexual relations with someone outside of marriage
affinity Related by marriage
agency A type of working relationship in which one person represents another person in a
business transaction with a third party
agency by estoppel When the principal's actions lead the third party to believe that the agent is working
for the principal
agent The person who has been authorized to do the work
agent's agent An agent who is appointed by another agent without the principal's authority to do
so
alimony An allowance for support paid to one person by the former spouse in a divorce
alternative dispute resolution (ADR) Parties try to resolve disagreements outside of the usual court system, by
mediation, arbitration, conciliation, and negotiation
annual percentage rate (APR) The true interest rate of a loan
, annulment A declaration by the court that a marriage was never valid
apparent authority Authority that a third party believes an agent has while acting on behalf of the
principal
appellate court The U.S. courts of appeals in the federal system; hears appeals and reviews cases
from the lower courts
arraignment A formal hearing during which the defendant is read the indictment or information
and is asked to plead guilty or not guilty
arrest Occurs when a person is legally deprived of his or her freedom
articles of incorporation A legal document filed with the state to establish a corporation
assault Attempt to commit a battery
asset acquisition When one corporation agrees to purchase the assets, such as property, buildings,
and equipment, of a second corporation
assignment The transfer of a right under contract
assumption of risk A defense against negligence that is raised when the plaintiff knew of the risk and
still took the chance of being injured
bail Money or other property that is left with the court to assure that a person who has
been arrested, but released, will return to trial
bailment The transfer of possession and control of personal property to another with the
intent that the same property will be returned later
bankruptcy The legal process by which a debtor can make a fresh start through the sale of
assets to pay off creditors
battery The unlawful touching of another person
beneficiary The person named in an insurance policy to receive the proceeds of the policy
Study Guide, Practice
Questions & Exam Review
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,acceptance The second party's unqualified willingness to go along with the first party's proposal
accord and satisfaction A legal way to settle contractual disputes by which one party agrees to accept less
than the amount due as full payment
actual authority The real power a principal gives to an agent
actual notice A formal notice given directly to a party, usually using certified mail with a receipt
adhesion contract A take-it-or-leave-it offer made by a party who holds most of the power in a
bargaining session
administrative law The body of rules created by government agencies
adultery When one spouse has sexual relations with someone outside of marriage
affinity Related by marriage
agency A type of working relationship in which one person represents another person in a
business transaction with a third party
agency by estoppel When the principal's actions lead the third party to believe that the agent is working
for the principal
agent The person who has been authorized to do the work
agent's agent An agent who is appointed by another agent without the principal's authority to do
so
alimony An allowance for support paid to one person by the former spouse in a divorce
alternative dispute resolution (ADR) Parties try to resolve disagreements outside of the usual court system, by
mediation, arbitration, conciliation, and negotiation
annual percentage rate (APR) The true interest rate of a loan
, annulment A declaration by the court that a marriage was never valid
apparent authority Authority that a third party believes an agent has while acting on behalf of the
principal
appellate court The U.S. courts of appeals in the federal system; hears appeals and reviews cases
from the lower courts
arraignment A formal hearing during which the defendant is read the indictment or information
and is asked to plead guilty or not guilty
arrest Occurs when a person is legally deprived of his or her freedom
articles of incorporation A legal document filed with the state to establish a corporation
assault Attempt to commit a battery
asset acquisition When one corporation agrees to purchase the assets, such as property, buildings,
and equipment, of a second corporation
assignment The transfer of a right under contract
assumption of risk A defense against negligence that is raised when the plaintiff knew of the risk and
still took the chance of being injured
bail Money or other property that is left with the court to assure that a person who has
been arrested, but released, will return to trial
bailment The transfer of possession and control of personal property to another with the
intent that the same property will be returned later
bankruptcy The legal process by which a debtor can make a fresh start through the sale of
assets to pay off creditors
battery The unlawful touching of another person
beneficiary The person named in an insurance policy to receive the proceeds of the policy
