FBLA Business Law and Ethics 3

Question 1

What is 'arbitration' as an alternative to litigation?

Accepted Answer

A private dispute resolution process where a neutral third party makes a binding decision

Answer

Arbitration is a private, legally binding dispute resolution method where an arbitrator hears both sides and issues a decision.

Question 2

What is the purpose of a 'non-disclosure agreement' (NDA)?

Accepted Answer

To protect confidential information from being shared with unauthorized parties

Answer

An NDA is a legal contract that prevents parties from sharing confidential information disclosed during a business relationship.

Question 3

Which ethical framework judges the morality of an action based solely on its outcomes?

Accepted Answer

Utilitarianism

Answer

Utilitarianism evaluates actions by their consequences, aiming to produce the greatest good for the greatest number.

Question 4

What does 'limited liability' mean for a business owner?

Accepted Answer

The owner's personal assets are protected from business debts and lawsuits

Answer

Limited liability means owners risk only their investment in the business; personal assets cannot be seized to satisfy business obligations.

Question 5

What is 'eminent domain' in U.S. law?

Accepted Answer

The government's right to take private property for public use with fair compensation

Answer

Eminent domain is the constitutional power of federal and state governments to take private property for public use, provided just compensation is paid.

FBLA - Future Business Leaders of America Practice Test

FBLA - Future Business Leaders of America Practice Test

FBLA Business Law and Ethics 3