FBLA Business Law Practice Questions with Explanations
Questions
The supreme law of the United States is the:
- U.S. Constitution
- Uniform Commercial Code
- Federal Register
- Common law of England
Law made by judges through court decisions is called:
- Common law
- Statutory law
- Administrative law
- Constitutional law
Laws passed by legislatures, such as Congress or a state assembly, are:
- Statutes
- Common law
- Administrative regulations
- Executive orders
Rules and regulations created by government agencies, such as the EPA, are:
- Administrative law
- Common law
- Statutory law
- Constitutional amendments
The principle that courts follow earlier decisions in similar cases is:
- Stare decisis
- Due process
- Res judicata
- Habeas corpus
A uniform set of laws governing commercial transactions, adopted in some form by all 50 states, is the:
- Uniform Commercial Code
- Restatement of Torts
- Model Penal Code
- Federal Trade Act
The UCC article that governs the sale of goods is:
- Article 2
- Article 3
- Article 9
- Article 1
The first ten amendments to the U.S. Constitution are called the:
- Bill of Rights
- Articles of Confederation
- Federalist Papers
- Commerce Clause
The constitutional clause that gives Congress the power to regulate trade among the states is the:
- Commerce Clause
- Supremacy Clause
- Due Process Clause
- Equal Protection Clause
The constitutional principle that federal law overrides conflicting state law is the:
- Supremacy Clause
- Commerce Clause
- Full Faith and Credit Clause
- Necessary and Proper Clause
The constitutional guarantee that government must use fair procedures before taking life, liberty, or property is:
- Due process
- Equal protection
- Double jeopardy
- Eminent domain
The government's power to take private property for public use with just compensation is:
- Eminent domain
- Adverse possession
- Zoning
- Escheat
Law that deals with offenses against society as a whole and is prosecuted by the government is:
- Criminal law
- Civil law
- Contract law
- Tort law
Law that deals with disputes between private parties, such as contract disputes, is:
- Civil law
- Criminal law
- Military law
- International law
In a civil case, the plaintiff must prove the case by:
- A preponderance of the evidence
- Proof beyond a reasonable doubt
- Clear and absolute certainty
- A unanimous jury vote in every state
In a criminal case, the prosecution must prove guilt:
- Beyond a reasonable doubt
- By a preponderance of the evidence
- By clear and convincing evidence
- By a simple majority vote
The party who files a civil lawsuit is the:
- Plaintiff
- Defendant
- Prosecutor
- Appellee
The court's power to hear and decide a case is called:
- Jurisdiction
- Venue
- Standing
- Precedent
The highest court in the United States is the:
- U.S. Supreme Court
- U.S. Court of Appeals for the D.C. Circuit
- Court of Federal Claims
- Senate Judiciary Committee
Federal trial courts are called:
- U.S. District Courts
- U.S. Courts of Appeals
- Circuit Courts of the Supreme Court
- Superior Courts
A court that reviews the decisions of lower courts for legal errors is a(n):
- Appellate court
- Trial court
- Small claims court
- Probate court
A court that handles disputes involving small amounts of money, often without lawyers, is a:
- Small claims court
- Court of appeals
- Federal district court
- Tax court
Federal courts may hear cases between citizens of different states when the amount in controversy exceeds:
- $75,000
- $10,000
- $1,000,000
- $5,000
The pretrial process in which each side gathers information from the other, such as through depositions, is:
- Discovery
- Arraignment
- Voir dire
- Appeal
Sworn testimony taken outside of court before trial is a:
- Deposition
- Subpoena
- Summons
- Verdict
A court order requiring a person to appear in court or produce documents is a:
- Subpoena
- Deposition
- Injunction
- Lien
A court order requiring a party to do or stop doing a specific act is a(n):
- Injunction
- Subpoena
- Summons
- Garnishment
Resolving a dispute with a neutral third party who helps the parties reach their own agreement is:
- Mediation
- Arbitration
- Litigation
- Adjudication
Resolving a dispute by having a neutral third party hear both sides and issue a decision, often binding, is:
- Arbitration
- Mediation
- Negotiation
- Conciliation
Settling disputes outside of court through methods such as mediation and arbitration is:
- Alternative dispute resolution
- Class action litigation
- Judicial review
- Summary judgment
A lawsuit filed by one or more people on behalf of a large group with similar claims is a:
- Class action
- Counterclaim
- Cross-appeal
- Derivative suit
The deadline for filing a lawsuit after an injury or breach occurs is set by the:
- Statute of limitations
- Statute of frauds
- Parol evidence rule
- Doctrine of laches
A legally enforceable agreement between two or more parties is a:
- Contract
- Tort
- Warranty
- Lien
The basic elements of a valid contract are offer, acceptance, consideration, capacity, and:
- Legality
- Notarization
- A written signature in every case
- A witness
Something of value that each party gives up or promises in a contract is:
- Consideration
- Capacity
- Acceptance
- Legality
The legal ability to enter into a contract is:
- Capacity
- Consideration
- Mutual assent
- Legality
A contract made by a minor is generally:
- Voidable by the minor
- Void from the start
- Fully enforceable against the minor
- Illegal
Contracts that minors generally cannot avoid include those for:
- Necessaries such as food, shelter, and clothing
- Video games
- Sports cars
- Concert tickets
A contract that has no legal effect from the beginning, such as an agreement to commit a crime, is:
- Void
- Voidable
- Unenforceable but valid
- Executed
A contract that one party has the option to cancel, such as one made under duress, is:
- Voidable
- Void
- Executed
- Bilateral
A contract in which both parties exchange promises is a(n):
- Bilateral contract
- Unilateral contract
- Implied contract
- Quasi contract
A contract in which a promise is exchanged for an act, such as a reward offer, is a(n):
- Unilateral contract
- Bilateral contract
- Express contract
- Executed contract
A contract formed by the conduct of the parties rather than by words is a(n):
- Implied contract
- Express contract
- Quasi contract
- Formal contract
A contract whose terms are stated in words, oral or written, is a(n):
- Express contract
- Implied contract
- Quasi contract
- Void contract
A contract that has been fully performed by both parties is:
- Executed
- Executory
- Voidable
- Unilateral
An obligation imposed by a court to prevent one party from being unjustly enriched, even without an actual contract, is a(n):
- Quasi contract
- Express contract
- Bilateral contract
- Option contract
A contract that keeps an offer open for a set time in exchange for consideration is a(n):
- Option contract
- Bilateral contract
- Unilateral contract
- Requirements contract
A response to an offer that changes its terms is a(n):
- Counteroffer, which rejects the original offer
- Acceptance with conditions that forms a contract
- Revocation by the offeror
- Option contract
The rule that an acceptance must match the terms of the offer exactly is the:
- Mirror image rule
- Mailbox rule
- Parol evidence rule
- Statute of frauds
The rule that an acceptance sent by mail is effective when it is sent, not when received, is the:
- Mailbox rule
- Mirror image rule
- Statute of frauds
- Parol evidence rule