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WGU C713 Business Law Pre-Assessment
Exam – Complete 500 Questions with
Verified Answers, Newly Released 2026–
Official Exam Overview: The WGU C713 Business Law Pre-Assessment evaluates a learner’s understanding of foundational legal principles that govern business operations in the United States. The exam emphasizes sources of law, the court system, constitutional principles, legal reasoning, and doctrines that guide judicial decision-making. Learners are assessed on their ability to interpret legal concepts and apply them to realistic business and legal scenarios. Exam Coverage Areas:
- Sources of Law
- Court System and Jurisdiction
- Legal Doctrines and Precedent
- Constitutional Law Principles
- Business Law Foundations
- Case Law Analysis QUESTION 1: A federal trial court judge is deciding a case based on constitutional law. The judge finds a past appellate case that is very similar to the current case and decides to follow the ruling established by the prior court. Which legal concept describes why this decision is binding on future cases? A) Administrative law B) Res ipsa loquitur C) Legal positivism D) Stare decisis ✅ Rationale: Stare decisis requires courts to follow established precedent when deciding similar cases. This doctrine ensures consistency and predictability in the legal system. QUESTION 2: Which source of law is created by legislative bodies at the federal, state, or local level? A) Common law
B) Administrative law
QUESTION: A federal trial court judge is deciding a case based on constitutional law. The judge finds a past appellate case that is very similar to the current case and decides to follow the ruling established by the prior court. Which legal concept describes why this decision is binding on future cases? A)Stare decisis B)Administrative law C) Res ipsa loquitur D) Legal positivism - ANSWER-Stare decisis QUESTION: In which two industries can children under the age of 14 work, according to the Fair Labor Standards Act of 1938?
-Fast food
- Entertainment -Retail - ANSWER- Agriculture Entertainment QUESTION: Which two conditions guarantee unpaid leave for a serious health impairment under the Family of Medical Leave Act? -A condition that requires an urgent care visit.
- A condition that necessitates hospitalization. -A condition that requires multiple visits to a healthcare provider in a year. -A condition that is incapacitating, such as a sprained ankle. - ANSWER--A condition that necessitates hospitalization. -A condition that requires multiple visits to a healthcare provider in a year. QUESTION: A 25-year old white male employee reveals to his boss that his wife is pregnant and requests time off until the baby is born. Soon thereafter, the boss begins treating the employee differently and starts assigning the employee's current client accounts to a childless, 40-year old Asian female co-worker. Two weeks late, the employee is demoted for poor work performance, and the time-off request is denied. The employee decides to sue for workplace discrimination.
Which portion of the Civil Rights Act supports this employee's claim? A) Age discrimination B)Race discrimination C) Pregnancy discrimination D) Family responsibility discrimination - ANSWER-Family responsibility discrimination QUESTION: A corporation advertises a job opening and interviews several applicants. A 35- year-old African American woman states that she is pregnant, a 38-year-old Hispanic woman states that she lived two hours from the office, and a 25-year-old white man states that he is gay. After the interviews, the female candidates are told that the position has been eliminated. However, the male applicant is hired two days later for the advertised position. It is determined that workplace discrimination had occurred. Which form of discrimination occurred? 3
A) Geographic discrimination B)Sexual orientation discrimination C) Age discrimination D) Race discrimination - ANSWER-Sexual orientation discrimination QUESTION: What is a characteristic of an independent contractor? A) Provides own tools and place of work B)Works exclusively for one principal C) Functions under direct control and supervision D) Receives a salary from the principal - ANSWER-Provides own tools and place of work QUESTION: What is a characteristic of an independent contractor? A) The principal pays no benefits on behalf of the agent B)The job is a regular part of the principal's business C) The principal deducts Social Security taxes 4
What permits the female applicant to sue the gas station owner under these conditions? A) The Age Discrimination in Employment Act B)Fourteenth Amendment C) The Civil Rights Act of 1866 D) The VII of the Civil Rights Act of 1964 - ANSWER-The VII of the Civil Rights Act of 1964 What is the principal source of stare decisis and precedent? A) Constitutional Law B)Administrative Law C) Statutory Law D) Common Law - ANSWER-Common Law QUESTION: A rent-to-own store offered for sale a sofa that was manufactured in a foreign county. The store intentionally represented that the sofa was made from leather, but in reality it was made from vinyl. A consumer used a credit card to purchase the sofa and hopes the Federal Trade Commission regulations can help resolve the dispute.
B)Common Law C) Statutory Law D) Constitutional Law - ANSWER-Common Law QUESTION: During a state trial the following testimony is recorded: An individual holds an online auction claiming to be selling the rights to a valuable apartment building. A small business owner wins the auction and pays the individual $1 million, only to learn that the individual did not disclose that the apartment building has serious structural defects, in a panic, the small business owner burns down the building and asks the insurance company to pay for the loss. Which trial action brought by the state against the small business owner is supported by this scenario? A) Criminal trial for making false statements B)Civil trial for arson C) Civil trial for tortious interference D) Criminal trial for fraud - ANSWER-Criminal trial for fraud 8
QUESTION: During a state trial, the following testimony is recorded: An individual holds an online auction claiming to be selling the rights to a large bridge in New York. The individual does not own the bridge or have any claim to it. A small business is looking to establish a paving contract with the City of New York and bids $1 million in the auction for the bridge, hoping to leverage the bridge into a contract with the city. The small business wins the auction and pays the individual $1 million, only to learn that the individual does not have a legal claim on the bridge. Which trial action brought by the state is supported by this scenario? A) Criminal trial for making false statements B)Civil trial for tortious interference C) Civil trial for slander of title D) Criminal trial for fraud - ANSWER-Criminal trial for fraud QUESTION: During a state trial, the following testimony is recorded: An individual working for Firm A learns of a contract between Firms B and C. The individual goes to Firm C and convinces it to break its contract with Firm B and enter into a new contract with Firm A. The individual lies to Firm A about personal involvement in the conflict, saying Firm C decided to break the contract with Firm B on its own. The individual repeats the same lie to Firm B.
Which state trial action brought by Firm B is supported by this scenario? A) Criminal trial for making false statements B)Criminal trial for tortious interference with a contract C)Civil trial for tortious interference with a contract D) Civil trial for making false statements - ANSWER-Civil trial for tortious interference with a contract QUESTION: An employee leaves the company office and is injured by a falling tree branch. The employee sues the company. The trial court rules that the company is liable for the worker's injury. This decision goes against past precedent, which held that employers are not liable for injuries to employees outside the office. The company appeals the decision, and a U.S. court of appeals holds in the company's favor. How will future rulings by judges who disagree with a court of appeal's findings be affected by this precedent? A) The court of appeals will sanction future judges who fail to follow precedent. B)Future rulings of trial courts that fail to consider precedent will be overturned by the court of appeals directly. 10
C)The court of appeals will order the lower courts that fail to consider precedent to rehear the case. D)Future rulings by judges who disagree with a U.S. court of appeal's ruling will be taken up directly by - ANSWER-The court of appeals will order the lower courts that fail to consider precedent to rehear the case. QUESTION: What is an example of the concept of precedent? A)A case that a lower trial court identifies as resolving a similar issue B) A decision of an administrative agency that deals with a related matter C) An injunction issued by a judge of an appellate court D) A dissent written by a justice of the Supreme Court - ANSWER-A case that a lower trial court identifies as resolving a similar issue QUESTION: A large Midwestern manufacturing firm fires a 35 year old, African American, female employee. The employee is told "Our company desires to fit a certain image, which you do not reflect." The employee is immediately replaced with a younger, Caucasian American. 11
D) Yes, because the financial condition of the company is directly related to the issue of a wage increase. - ANSWER-Yes, because the company must provide whatever documents the union requests during collection bargaining. QUESTION: Which law initially prohibited federal court injunctions in nonviolent labor disputes? A) Fair Labor Standards Act B)Norris-LaGuardia Act C) Robinson-Patman Act D) National Labor Relations Act - ANSWER-Norris-LaGuardia Act QUESTION: A prospective employee has two job offers. Company A offers a higher salary and is an at-will employer. Company A does not have a union, but Company B does. The prospective employee is concerned about the future and job security. Which company would alleviate these concerns? A) Company A because employment is at-will 13
B)Company A because the salary is higher C) Company B because an employee is guaranteed a job until retirement D) Company B because an employee can only be terminated for cause
- ANSWER-Company B because an employee can only be terminated for cause. QUESTION: A newly hired employee at a company has been asked to join the union. The employee is concerned about promotions and advancements with the new employer. What can a union do to satisfy this concern? A)Negotiate a provision providing fair promotions B)Reduce the duration of the probationary period C) Offer benefits and a pay raise during the probation period D) Promise a raise and promotion within two years - ANSWER-Negotiate a provision providing fair promotions QUESTION: A hospital proposes to acquire a group of physicians. If the proposed vertical merger goes through, the hospital will control 80% of the primary care physicians in the relevant geographic market. The hospital argues that the merger will improve patient care. The Federal Trade Commission (FTC) sues to block the acquisition.
