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Quizzes > Business & Finance

Business Law Practice Test: Contracts, Torts, and Agency

Quick, free quiz with business law practice questions. Instant results.

Editorial: Review CompletedCreated By: Eduardo VidalesUpdated Aug 26, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration for business and law practice exam quiz on sky blue background

Use this business and law practice test to check your understanding of contracts, torts, agency law, and more before an exam. If you want to drill deeper, try our tort law quiz or explore a quiz for law students for broader legal topics and quick refreshers.

Which element is required for a valid contract under common law?
A notary seal
Mutual assent (offer and acceptance)
A security interest
Performance by both parties
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Revocation of an offer terminates the offer if the offeree receives it before accepting.
False
True
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Under the mailbox rule, an acceptance is generally effective upon dispatch.
True
False
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Which doctrine allows enforcement of a promise without consideration to avoid injustice?
Promissory estoppel
Quantum meruit
Res judicata
Novation
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Which contract must be in writing to be enforceable under the Statute of Frauds?
A contract for services fully performed within one day
A contract for the sale of land
An oral loan repayable within three months
A contract for $300 of goods with immediate delivery and payment
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Specific performance is an available remedy for breach of personal services contracts.
True
False
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Under the parol evidence rule, which evidence is generally admissible?
Evidence to add new terms to a completely integrated contract
Evidence of prior oral terms that contradict a final integrated writing
Evidence of subjective intent not communicated to the other party
Evidence to interpret an ambiguity in a final written agreement
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A merchant's firm offer under UCC Article 2 is enforceable without consideration if signed in writing.
False
True
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Accord alone immediately discharges the original contractual duty, even if satisfaction has not occurred.
False
True
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When a party anticipatorily repudiates a contract, what is a lawful option for the aggrieved party?
Ignore mitigation duties until the due date
Increase their own performance beyond the contract terms
Treat the repudiation as a breach and sue immediately
Unilaterally rewrite the contract to remove their own obligations
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A liquidated damages clause is enforceable when it is
Triggered by minor, trivial breaches only
Designed to punish the breaching party
Greater than actual damages by any amount
A reasonable estimate of anticipated damages and not a penalty
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A public figure plaintiff in a defamation action must prove which additional element?
Res ipsa loquitur
Actual malice
Negligence per se
Strict liability
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Under UCC 2-207 (battle of the forms), additional terms in a merchant-to-merchant acceptance become part of the contract unless which condition applies?
They are printed in a different font size
They materially alter the offer
They are mailed instead of emailed
They are stated after the price term
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Which factor is commonly considered when piercing the corporate veil?
High product prices
Commingling of personal and corporate funds
Lawful tax deductions
Issuance of common stock
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Under Clayton Act Section 7, the government may challenge a merger that
Involves companies under $10 million revenue
Creates a monopoly in a foreign country only
May substantially lessen competition
Results in product price increases regardless of market power
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Which claim generally has the highest priority in bankruptcy distribution?
Equity holders
Postpetition interest on unsecured claims
Domestic support obligations
General unsecured trade claims
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Which statement about fair use in copyright law is most accurate?
Use of less than 10% is always fair use
Courts weigh factors including purpose, nature, amount, and market effect
Attribution alone makes a use fair
Any noncommercial use is automatically fair use
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Which covenant in a commercial loan most directly protects the lender's priority in collateral?
A change-of-control covenant
A financial reporting covenant
A restricted payments covenant
A negative pledge covenant
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Which statement about data privacy compliance for HR in the EU is accurate under the GDPR?
Employee data is excluded from GDPR scope
HR may transfer data to any non-EU country without safeguards
Processing employee data generally requires a lawful basis such as legitimate interests or consent
Consent from employees is always freely given and sufficient
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In corporate compliance programs, which element aligns with DOJ guidance as a hallmark of effectiveness?
Reliance on verbal policies only
No consequences for violations
Infrequent training with no tracking
Risk-based third-party due diligence
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Study Outcomes

  1. Understand Contract Law Principles -

    Grasp the essential elements of contracts - offer, acceptance, consideration, and enforceability - to confidently tackle business law practice questions.

  2. Analyze Tort Scenarios -

    Break down tort cases by identifying duty, breach, causation, and damages, sharpening your skills for the business and law practice exam.

  3. Interpret Agency Law Relationships -

    Recognize the roles and duties of principals, agents, and third parties to accurately respond to agency law questions.

  4. Apply Legal Concepts to Test Questions -

    Use real-world business law scenarios to practice applying legal rules and improve your performance on the business law practice test.

  5. Evaluate Answer Feedback -

    Assess your quiz results with instant feedback to identify knowledge gaps and reinforce correct legal reasoning.

  6. Identify Exam Strategies -

    Learn targeted tips and techniques for approaching multiple-choice and scenario-based questions on the business law exam.

Cheat Sheet

  1. Contract Formation Essentials -

    Sharpen your skills for the business and law practice exam by mastering the three pillars of contract formation: offer, acceptance and consideration - recall "OAC." For instance, the mirror image rule means an acceptance must match the offer exactly or it becomes a counteroffer, and under the mailbox rule acceptance is effective upon dispatch (Cornell Law School). Practice sample business law practice questions for instant feedback on these nuances.

  2. Negligence Framework in Torts -

    Review the four elements - duty, breach, causation and damages - by recalling "DBCD." For example, negligence arises when a reasonable person's duty is breached, causing actual harm (Black's Law Dictionary). Work through business law practice test scenarios to strengthen issue-spotting skills and boost confidence.

  3. Agency Principles and Duties -

    Identify how agency relationships form through agreement, ratification or estoppel and the fiduciary duties owed - loyalty, care and disclosure (Restatement Second of Agency). A sample scenario: a real estate agent's duty to disclose material information to a principal. Try out business law practice questions on authority limits and termination to cement your grasp.

  4. Choosing the Right Business Entity -

    Compare sole proprietorships, partnerships, LLCs and corporations, focusing on liability protection and tax treatment (IRS guides). Remember: "Limited Liability, Lovely Tax Options" for LLCs, while corporations offer easy capital raises but double taxation. Review sample business law exam hypotheticals on piercing the corporate veil.

  5. Sale of Goods Under UCC Art. 2 -

    Learn the Statute of Frauds requires contracts for goods over $500 to be in writing and enforceable (UCC ยง2-201). Use the "$500 WRAP" trick: Writing, Recipient expectation, Assented Parties, Price, over $500. Test yourself with business law test questions on merchant confirmatory memoranda to ensure retention.

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