PART III: Business Law (Area II)

In this section

• Chapter 7: Agency
  • Formation and Types of Agency Relationships
    Delve into how principal-agent relationships are formed, including express, implied, and apparent authority, with practical case studies and diagrams that illustrate key elements of agency law.
  • Authority of Agents and Principals (Actual, Apparent, Ratification)
    Explore the fundamentals of actual, apparent, and ratified authority in agency relationships, ensuring CPA candidates understand how principals can become legally bound by agent actions.
  • Duties and Liabilities of Agents and Principals
    Comprehensive exploration of fiduciary duties, liabilities, and remedies in principal-agent relationships, enabling CPA candidates to understand and apply key agency law concepts.
  • Termination of Agency and Impact on Third Parties
    Explore how agency relationships end through revocation, renunciation, and events by law, plus the crucial notice requirements for protecting third-party rights and reducing liability risks.
• Chapter 8: Contracts
  • Elements of Contract Formation (Offer, Acceptance, Consideration)
    Explore how valid contracts are formed through essential elements: offer, acceptance, and consideration. Learn the nuances of the mirror image rule, mailbox rule, and common pitfalls to ensure you’re well-prepared for exam and real-world scenarios.
  • Defenses to Formation (Fraud, Mistake, Duress, Illegality)
    A comprehensive exploration of core contract defenses under business law, featuring real-world examples, insights into fraud, mistake, duress, and illegality, and best practices for CPA exam success.
  • Performance, Discharge, and Remedies for Breach
    Explore contract performance requirements, substantial performance doctrines, discharge principles (impossibility and frustration), and legal vs. equitable remedies in breach of contract situations—all crucial for the CPA REG Exam.
  • Special Types of Contracts (Sales, Employment, Online Contracts)
    Explore the unique legal frameworks and practical considerations governing sales contracts under the UCC, employment agreements, and electronic contracts in the digital age.
• Chapter 9: Debtor-Creditor Relationships
  • Rights, Duties, and Liabilities of Debtors, Creditors, and Guarantors
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  • Bankruptcy Basics and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
    Discover the essentials of Bankruptcy under Chapters 7, 11, and 13, explore the concept of priority claims, learn about the automatic stay, and understand the impact of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 on dischargeable debts.
  • Secured and Unsecured Transactions under the Uniform Commercial Code (UCC)
    Explore the principles of secured and unsecured transactions under the UCC, including attachment, perfection, lien priority, and best practices for lenders and borrowers.
  • Priorities, Perfection, and Enforcement of Security Interests
    Discover the essentials of secured transactions under UCC Article 9, focusing on priority rules, perfection methods, and creditor enforcement, complete with illustrative timelines and real-world examples.
• Chapter 10: Federal Laws and Regulations Affecting Business
  • Employment Taxes and Worker Classification (Employee vs. Independent Contractor)
    Explore the key criteria for worker classification, discover how to navigate employment taxes, and learn best practices for payroll tax compliance in CPA exam contexts.
  • Qualified Health Plans, Mandates, and Credits under the Affordable Care Act
    Explore employer mandates, qualified health plans, and the small-business health care tax credits introduced by the ACA, and understand how they affect large and small businesses’ tax and compliance obligations.
  • The Foreign Corrupt Practices Act and Anti-Bribery Regulations
    Explore FCPA anti-bribery provisions, accounting requirements, and compliance best practices to help businesses maintain integrity in foreign transactions.
  • Other Federal Statutes and Industry-Specific Rules
    This article provides a comprehensive overview of key federal statutes and specialized industry regulations relevant to business operations and CPA candidates preparing for Area II of the REG Exam. Gain insights into statutory frameworks and compliance issues across banking, healthcare, environmental, telecommunications, and more.
• Chapter 11: Business Structures
  • Legal Characteristics of Sole Proprietorships, Partnerships, Corporations, LLCs
    Explore the foundational legal characteristics, liability protection, formation requirements, and tax implications of sole proprietorships, partnerships, corporations, and LLCs.
  • Formation, Operation, and Termination of Various Entities
    A detailed guide on how to form, manage, and dissolve different types of business entities, including step-by-step outlines for articles of incorporation, partnership agreements, and compliance requirements.
  • Rights, Duties, and Authority of Owners and Management
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  • Governing Documents, Internal Regulations, and Compliance
    Explore the essentials of operating agreements, shareholder agreements, and recordkeeping obligations across various business structures. Learn best practices, internal controls, and key compliance requirements to ensure efficient and lawful enterprise operations.