WGU Business Law for Accountants
ACTUAL QUESTIONS AND CORRECT
ANSWERS
drawer - Correct answers✔✔The person who writes a check.
Drawee - Correct answers✔✔party ordered to pay a draft or a check
Indorser - Correct answers✔✔person who writes his or her name on back of an instrument
Payee - Correct answers✔✔A person to whom a check is written
negotiable instrument - Correct answers✔✔an unconditional written promise to pay a specified
sum of money at a specified time upon demand of the holder
per se violation - Correct answers✔✔A restraint of trade that is so anticompetitive that it is
deemed inherently (per se) illegal.
Rule of Reason - Correct answers✔✔before ruling on the legality of certain business practices, a
court examines why they were undertaken and what effect they have on market competition
Secured Party - Correct answers✔✔any creditor who has a security interest in the debtor's
collateral
course of dealing - Correct answers✔✔Prior conduct between parties to a contract that
establishes a common basis for their understanding.
, course of performance - Correct answers✔✔The conduct that occurs under the terms of a
particular agreement; such conduct indicates what the parties to an agreement intended it to
mean.
usage of trade - Correct answers✔✔Any practice or method of dealing having such regularity of
observance in a place, vocation, or trade as to justify an expectation that it will be observed with
respect to the transaction in question.
Strict Liability - Correct answers✔✔Liability regardless of fault. In tort law, strict liability may
be imposed on defendants in cases involving abnormally dangerous activities, dangerous
animals, or defective products.
an agent - Correct answers✔✔the party appointed by another to act in his/her name in forming
contracts with third parties is
Agency by Agreement - Correct answers✔✔Formed through express consent (oral or written) or
implied by conduct
Agency by Estoppel - Correct answers✔✔is an agency relationship that is created because the
principal's action caused a third party to believe that an agency relationship exists.
Agency by Ratification - Correct answers✔✔Principal either by act or by agreement ratifies,
after the fact, conduct of a person who is not in fact an agent
Agency by Operation of Law - Correct answers✔✔Agency based on social duty is formed in
certain situations when the agent is unable to contact the principal: Necessaries, Emergencies.
ACTUAL QUESTIONS AND CORRECT
ANSWERS
drawer - Correct answers✔✔The person who writes a check.
Drawee - Correct answers✔✔party ordered to pay a draft or a check
Indorser - Correct answers✔✔person who writes his or her name on back of an instrument
Payee - Correct answers✔✔A person to whom a check is written
negotiable instrument - Correct answers✔✔an unconditional written promise to pay a specified
sum of money at a specified time upon demand of the holder
per se violation - Correct answers✔✔A restraint of trade that is so anticompetitive that it is
deemed inherently (per se) illegal.
Rule of Reason - Correct answers✔✔before ruling on the legality of certain business practices, a
court examines why they were undertaken and what effect they have on market competition
Secured Party - Correct answers✔✔any creditor who has a security interest in the debtor's
collateral
course of dealing - Correct answers✔✔Prior conduct between parties to a contract that
establishes a common basis for their understanding.
, course of performance - Correct answers✔✔The conduct that occurs under the terms of a
particular agreement; such conduct indicates what the parties to an agreement intended it to
mean.
usage of trade - Correct answers✔✔Any practice or method of dealing having such regularity of
observance in a place, vocation, or trade as to justify an expectation that it will be observed with
respect to the transaction in question.
Strict Liability - Correct answers✔✔Liability regardless of fault. In tort law, strict liability may
be imposed on defendants in cases involving abnormally dangerous activities, dangerous
animals, or defective products.
an agent - Correct answers✔✔the party appointed by another to act in his/her name in forming
contracts with third parties is
Agency by Agreement - Correct answers✔✔Formed through express consent (oral or written) or
implied by conduct
Agency by Estoppel - Correct answers✔✔is an agency relationship that is created because the
principal's action caused a third party to believe that an agency relationship exists.
Agency by Ratification - Correct answers✔✔Principal either by act or by agreement ratifies,
after the fact, conduct of a person who is not in fact an agent
Agency by Operation of Law - Correct answers✔✔Agency based on social duty is formed in
certain situations when the agent is unable to contact the principal: Necessaries, Emergencies.
