FBLA Business Law and Ethics 1

Question 1

What are the four essential elements required for a valid contract?

Accepted Answer

Offer, acceptance, consideration, capacity

Answer

Signature, witness, notary, date

Answer

Payment, delivery, receipt, approval

Answer

Warranty, guarantee, bond, surety

Question 2

What is 'negligence' in business law?

Accepted Answer

Failure to exercise reasonable care, resulting in harm

Answer

Intentional harm to another party

Answer

Breach of a written contract

Answer

Unauthorized use of intellectual property

Question 3

What does the term 'intellectual property' refer to?

Accepted Answer

Creations of the mind protected by law, such as patents and copyrights

Answer

Physical assets owned by a business

Answer

A company's customer database

Answer

Trade secrets only

Question 4

Which business structure provides owners with limited liability protection while avoiding double taxation?

Accepted Answer

Limited Liability Company (LLC)

Answer

Sole proprietorship

Answer

C-Corporation

Answer

General partnership

Question 5

What is 'breach of contract'?

Accepted Answer

Failing to fulfill one's obligations under a valid contract

Answer

Signing a contract under duress

Answer

Terminating a contract legally

Answer

Modifying contract terms by mutual agreement

Question 6

What is the purpose of the Americans with Disabilities Act (ADA) in a business context?

Accepted Answer

To prohibit discrimination against individuals with disabilities

Answer

To regulate minimum wage requirements

Answer

To set safety standards for manufacturing

Answer

To govern international trade agreements