Business Law II DSST
A Free Study Guide!
Name of Exam: Business Law II DSST
Number of Questions: Around 95 (varies)
Time Limit: 120 Minutes
ACE Recommended Passing Score: 45
Practice Test Available?: No
Cost: $80 + Sitting Fee (Usually no more than $20) at your testing site. Military can take DSSTs for free with Tuition Assistance. Check with your Educational Officer!
Difficulty 1-5 : 5
(One being the easiest, and five being the hardest)
Exam Description:
The Business Law II DSST covers what a student would learn during a Junior or Senior level semester class in Business Law. While the bulk of the exam covers the Sale of Goods and Commercial Paper, the exam will also touch one such topics as Property, Debtor and Creditor Relations, and Business Organizations. The tester will be expected to apply his or her knowledge of these subjects to scenario-based questions.
Personal Thoughts:
The Business Law II DSST is generally considered to be one of the more difficult exams available. This is probably due to most people's unfamiliarity with most of the subject matter. Adding a bit more difficulty to the mix is the fact that many of the questions are scenario-based. Memorization of terms in many cases is not enough. You'll also need to understand how they relate to certain situations.
On my exams (yes, I took this one twice), there was a large amount of questions on both Sales of Goods and Commercial Paper. Though the Business Organization types were supposed to make up the most according to the DSST Fact Sheet, I only had a dozen or so questions on the subject. I would pay attention to those as well, but you'll want to make sure that you have Sale of Goods and Commercial Paper down cold. Coincidentally enough, this was what most of the scenario questions covered.
Exam breakdown:
Make sure you check out the Official DSST Fact Sheet for this exam.
Pay attention to the bottom of the fact sheet. It contains some sample questions that closely mimic the type of scenario-based questions you'll see on the actual exam.
The Business Law II DSST is broken down as follows:
| 26% | Business Organizations |
|---|---|
| 24% | Commercial Paper |
| 23% | ales of Goods |
| 18% | Debtor and Creditor Relations |
| 09% | Property |
Areas of Study
I'm going to list some specific topics that you'll need to study. Snazzlefrag also shared his outstanding downloadable Business Law II study notes. After that, I'll list some resources that covers the main areas listed above.
Though there are different versions of the Business Law II DSST, you'll most likely see some of the following on your exam:
- Subrogation
- Corporate Governance
- Implied Warranty
- Limited Partnerships
- Wills
- Executory Contracts
- Bailment
- Assignment
- Liability
- UCC Article 9
- Trusts
- Checks/Drafts
- Contributory Negligence
- Tender Offers
- Statute of Frauds
- Suretyship
- Fungible Goods
- Life Estates
- Principals
This is not a comprehensive list of topics! I highly recommend (as always) signing up for InstantCert and running through their entire flashcard series as well as seeing the Specific Feedback section for this exam. They've had years to accumulate their information, and it shows.
The below areas may seem a little light. For example, the Business Organization according to the DSST Fact Sheet covers 26% of the entire Business Law II DSST. Yet below, you'll only see three resources. One may infer that you can go easy on that subject. I'd suggest against it. ;)
First of all, there is a lot of information covered in those three resources. Secondly, it's not the information itself that you'll be tested upon. Rather it will be your understanding of the information. Most of the questions on the Business Law II exam is scenario based as mentioned before. Think of them as case studies. You'll be asked to use the knowledge you learn below to make judgments and decisions on those scenarios.
Wrapping this up and moving onto the study section - Drill this stuff into your head. Don't just memorize it. Understand it backwards and forwards.
Alright, here we go...
Business Organizations
(26% of the Business Law II DSST)
- The Concept of Agency (Video) - A great lecture on this subject from Appalachian State University and Google Video. It's not short (51 minutes) but it covers virtually everything on this particular topic that you'll see on the Business Law II DSST.
- Agency (Wikipedia Entry) - The material is a bit dry, which is why I wanted to give you a video option. Still, Wikipedia does a good job of listing the major points of Agency, and is worth a read. Personally, I'd watch the video first and then use this to refresh right before the exam.
- The Different Types of Business Organizations - A great overview of each type of organization. I'd read the entire thing, paying attention to the pros and cons of each. You will get scenario questions asking about liability and the benefits of each type of business. Know them well!
Commercial Paper
(24% of the Business Law II DSST)
- Uniform Commercial Code - You may as well read this now, as the next few areas of study deals with the UCC excursively. It's pretty dry reading for someone not in the legal field, but pay particular attention to Article 3 for this section of the exam. More on that below.
- Commercial Paper - I'm probably going to get a few groans here, but I'd suggest you read all of the links found on this page. It covers pretty much everything dealing with commercial paper you'll need for the Business Law II DSST.
- Promissory Note
- Bank Draft - Don't get overwhelmed by reading all of this. Know what it is, what each party's responsibilities are. Make sure you cover the area on the different types of checks (Money Orders, Cashier's Checks, etc). You'll need to scroll down a bit to find it.
- Certificate of Deposit - Once again, understand what it is and when it's used. There will probably be at least a few questions on this topic on your version of the Business Law II DSST.
- Commercial Paper on Snazzlefrag's Study Guide - Download the PDF if you haven't already. It's brief and to the point, more of a memorization tool than something to learn from. That makes it perfect once you've read and understand the above. After you've done that, then use this to fill the gaps and drill it until you've got it down firm.
Sales of Goods
(23% of the Business Law II DSST)
- Contracts - You'll need to understand the formations and types of contracts as well. I'd spend some time on this page and make sure you have a good grasp of the material. Follow the links that connect this article. For example, you'll also need to know Offer and Acceptance, Legal Capacity, etc. This is a lot of information to absorb, but it's necessary.
- Passage of Title and Risk of Loss - You should have an idea of what this is from previous reading on the UCC. This is the best breakdown I could find of when ownership actually changes hands in a transaction. You'll be asked "If situation "A" occurs and the product is damaged, who is held liable for the damaged product?" Know at what point ownership transfers as well as risk.
- More US Contract Law - Once again, you'll need to know almost everything on this page for the Business Law II DSST. Are you starting to see why this is such a rough exam? If you're ready to throw up your hands at this point, don't give up! Think about picking up one of the recommended books below. The Barron's guide in particular covers much of what you'll need. If I could find an online copy, it would be one of the only links on this page. No such luck as of yet though.
- Voidable Contracts - This is covered in the above links, but I wanted to make absolutely sure you didn't pass over the subject. You almost certainly will be asked questions about minors and how they affect a contract. Make sure you read up on the differences of voidable, void, and unenforceable contracts.
- Delegation - I'm really, really tempted just to tell you to read all of the articles on the right side of the screen when you follow this link. Everything under the "Contract Law " series needs to be learned.
- Statute of Frauds - I'd know this quite well as you'll probably get a few questions that apply.
- Assignment - Know this in detail. Understand when the assignment must be in writing.
- Warranties - You'll need to know this entire page. Know the different types of warranties, and be able to distinguish which covers what scenario. If asked "A brand new radio doesn't work when you get it home. What warranty is it in breach of?" You should know that probably falls under the" Warranty of Merchantability "
- Product Liability - More Tort Law fun for those who took the Introductory Business Law CLEP already. I probably sound like a broken record by now, but you'll need to know the entire page. You'll be given scenarios and probably asked who is liable in those situations.
- Remedies for Contract Breach - You should have already read this earlier, but just in case you "forgot". ;)
Debtor and Creditor Relations
(18% of the Business Law II DSST)
- Debt - As if we needed an introduction on this particular topic! Still, if you have the time I'd give this page a read-through. Though there are only one or two topics that directly apply to the exam, it still lays the foundation for many of the other topics in this section.
- Liens - Most folks should be familiar with at least the idea behind this subject. Don't get lost in the nomenclature at the bottom. Just know the different types such as consensual and nonconsensual, and follow the "Perfection" link to give that a read as well.
- Bankruptcy in the US - Don't get lost in the weeds on this one. Be able to identify the different chapters, and the protection that each gives. You may be asked during the Business Law II DSST to identify the chapter that applies to the given situation.
- Surety - A pretty simple concept.
Property
(08% of the Business Law II DSST)
- Personal Property - Pretty self explanatory, but make sure you read the entire page. This is a short one that lays the foundation for the next few topics.
- Real Property - Once again, just know what it is and what qualifies as Real Property.
- Fixtures - A brief understanding will be sufficient for the Business Law II DSST. Know about Chattel Property.
- Wills - Pay particular attention to the terminology towards the bottom, but also know the requirements for a will to be valid.
- Trusts and Estates - Short and sweet. Know the two are and when each may be used.
Recommended bargain-priced study resources
Always check your library first! You may be able to find some of these for free. You don't have to buy the officially recommended resources all the time. If you're the type of person that prefers to study from a textbook source however, then please see below.
Business Law (Barron's Business Review Series)
InstantCert Academy Business Law II Specific Exam Feedback - Tons of good information on the exam here. If you haven't already taken the Introductory Business Law CLEP then I'd also glance over the flashcards for that exam.
If you don't know what InstantCert is, then click here for the scoop as well as a discount code: **InstantCert Academy**
You'll find an InstantCert link for every exam here if that gives you an idea of the amount of information they have available. It's an outstanding resource.
Closing Thoughts
Man, I hated this exam. As mentioned before, if you've owned your own business or have a real estate background then some of this will be easy for you. It's those of us who don't fall into those two categories who really have issues.
I don't expect many to be taking the Business Law II DSST. There are easier Upper Level exams out there. The only reason I took it was the fact I needed 3 more UL credits and I thought it wouldn't be that bad after the Business Law CLEP. Once I failed it the first time, passing it became a personal goal.
My honest advice: Pick up the Barron's book from above, and study the crud out of it. Use Snazzlefrag's study guide once you've read through the topics in the Barron's book. That will help you grasp the knowledge enough to answer the scenarios. The rest of the Business Law II DSST is merely memorization of terminology, and isn't that different from many other DSST's. Totally doable, just know the material.
Best of luck!
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