CPCU 530 UPDATED EXAM SCRIPT QUESTIONS AND
ANSWERS GRADED A+
✔✔Discovery - ✔✔A pretrial exchange of all relevant information between the plaintiff
and defendant.
✔✔Deposition - ✔✔A pretrial discovery tool involving oral examination of a witness to
produce a written verbatim record.
✔✔Interrogatories - ✔✔Specific written questions or requests raised by one party to a
lawsuit that the opposing party must answer in writing.
✔✔Subpoena - ✔✔A legal order to a witness to appear at a certain place and time to
testify or to product documents.
✔✔Direct examination - ✔✔Questioning one's own witness during a legal proceeding.
✔✔Cross-examination - ✔✔Questioning an opposing party during a legal proceeding to
bring out information favorable to the questioner's own position or to challenge the
witness's testimony.
✔✔Relevance - ✔✔A quality of evidence that suggests the evidence is more or less
likely to be true.
✔✔Materiality - ✔✔A quality of evidence that tends to establish a particular element of
the claim that has legal significance.
✔✔Competence - ✔✔A quality of evidence that suggests the source is reliable and the
evidence is adequate to justify admission in court.
✔✔Hearsay rule - ✔✔The rule of evidence that prevents the admission of out-of-court
statements not made under oath by a person who is unavailable to testify.
✔✔General verdict - ✔✔A kind of verdict that entails a complete finding and a single
conclusion by a jury on all issues presented.
✔✔Special verdict - ✔✔A kind of verdict reached by a jury that makes findings of fact by
answering specific questions posed by the judge. The judge then applies the law to the
facts as the jury has found them.
✔✔Res judicata - ✔✔A doctrine that bars parties to a lawsuit on which final judgment
has been rendered from bringing a second lawsuit on the same claim or on related
transactions.
,✔✔Alternative dispute resolution - ADR - ✔✔Procedures to help settle disputes without
litigation, including arbitration, medication, and negotiation.
✔✔Mediation - ✔✔An alternative dispute resolution (ADR) method by which disputing
parties use a neutral outside party to examine the issues and develop a mutually
agreeable settlement.
✔✔Legislative rule - ✔✔A type of substantive administration agency rule that comes
from a statutory delegation of authority and that has the same force as a law enacted by
Congress or a legislature.
✔✔Interpretative rule - ✔✔A type of administrative agency rule that interprets statutes,
providing guidance for agency staff or regulated parties, but that lacks the force and
effect of law and therefore is not binding on individuals.
✔✔Procedural rule - ✔✔A type of administrative agency rule that prescribes procedures
for agency operations, legislative rule making and adjudication proceedings.
✔✔Standing to sue - ✔✔A party's right to sue, as one who has suffered or will suffer a
legal wrong or an adverse effect from an action.
✔✔Final order - ✔✔An administrative agency's final conclusion or disposition of any
material private right of a party, terminating an agency proceeding.
✔✔Exhaustion of administrative remedies - ✔✔The completion of all possible
administrative procedures and appeals in a case; required before a party can appeal an
agency action to a court.
✔✔Contract - ✔✔A legally enforceable agreement between two or more parties in which
each party makes some promise to the other.
✔✔Promisor - ✔✔The party to a contract making a promise.
✔✔Promisee - ✔✔The party to a contract to whom a promise is made.
✔✔Privity of contract - ✔✔The relationship that exists between the parties to a contract.
✔✔Third-party beneficiary - ✔✔A person who is not a party to a contract but who
benefits from it and has a legal right to enforce the contract if it is breached by either of
the contracting parties.
✔✔Breach of contract - ✔✔The failure, without legal excuse, to fulfill a contractual
promise.
, ✔✔Bilateral contract - ✔✔A contract in which each party promises a performance.
✔✔Unilateral contract - ✔✔A contract in which only one party makes a promise or
undertakes the requested performance.
✔✔Executed contract - ✔✔A contract that has been completely performed by both
parties.
✔✔Executory contract - ✔✔A contract that has not been completely performed by one
or both of the parties.
✔✔Express contract - ✔✔A contract whose terms and intentions are explicitly stated.
✔✔Implied contract - ✔✔A contract whose terms and intentions are indicated by the
actions of the parties to the contract and the surrounding circumstances.
✔✔Implied-in-fact contract - ✔✔A contract that is not express but that the parties
presumably intended, either by tacit understanding or by he assumption that it existed.
✔✔Implied-in-law contract - ✔✔An obligation that is not an actual contract but that is
imposed by law because of the parties' conduct or some special relationship between
them or because one ofhtem would otherwise be unjustly enriched.
✔✔Voidable contract - ✔✔A contract that one of the parties can reject (avoid) based on
some circumstance surrounding its execution.
✔✔Void contract - ✔✔An agreement that, despite the parties' intentions, never reaches
contract status and is therefore not legally enforceable or binding.
✔✔Offer - ✔✔A promise that requires some action by the intended recipient to make an
agreement.
✔✔Offeror - ✔✔The party to a contract who promises to give something in return for a
promise or an act by another party.
✔✔Offeree - ✔✔The party to a contract who makes a promise or acts in return for
something offered by another party.
✔✔Counteroffer - ✔✔A proposal an offer makes to an offeror that varies in some
material way from the original offer, resulting in rejection of the original offer and
constituting a new offer.
✔✔Acceptance - ✔✔The assent to an offer that occurs when the party to whom an offer
has been made either agrees to the proposal or does what has been proposed.
ANSWERS GRADED A+
✔✔Discovery - ✔✔A pretrial exchange of all relevant information between the plaintiff
and defendant.
✔✔Deposition - ✔✔A pretrial discovery tool involving oral examination of a witness to
produce a written verbatim record.
✔✔Interrogatories - ✔✔Specific written questions or requests raised by one party to a
lawsuit that the opposing party must answer in writing.
✔✔Subpoena - ✔✔A legal order to a witness to appear at a certain place and time to
testify or to product documents.
✔✔Direct examination - ✔✔Questioning one's own witness during a legal proceeding.
✔✔Cross-examination - ✔✔Questioning an opposing party during a legal proceeding to
bring out information favorable to the questioner's own position or to challenge the
witness's testimony.
✔✔Relevance - ✔✔A quality of evidence that suggests the evidence is more or less
likely to be true.
✔✔Materiality - ✔✔A quality of evidence that tends to establish a particular element of
the claim that has legal significance.
✔✔Competence - ✔✔A quality of evidence that suggests the source is reliable and the
evidence is adequate to justify admission in court.
✔✔Hearsay rule - ✔✔The rule of evidence that prevents the admission of out-of-court
statements not made under oath by a person who is unavailable to testify.
✔✔General verdict - ✔✔A kind of verdict that entails a complete finding and a single
conclusion by a jury on all issues presented.
✔✔Special verdict - ✔✔A kind of verdict reached by a jury that makes findings of fact by
answering specific questions posed by the judge. The judge then applies the law to the
facts as the jury has found them.
✔✔Res judicata - ✔✔A doctrine that bars parties to a lawsuit on which final judgment
has been rendered from bringing a second lawsuit on the same claim or on related
transactions.
,✔✔Alternative dispute resolution - ADR - ✔✔Procedures to help settle disputes without
litigation, including arbitration, medication, and negotiation.
✔✔Mediation - ✔✔An alternative dispute resolution (ADR) method by which disputing
parties use a neutral outside party to examine the issues and develop a mutually
agreeable settlement.
✔✔Legislative rule - ✔✔A type of substantive administration agency rule that comes
from a statutory delegation of authority and that has the same force as a law enacted by
Congress or a legislature.
✔✔Interpretative rule - ✔✔A type of administrative agency rule that interprets statutes,
providing guidance for agency staff or regulated parties, but that lacks the force and
effect of law and therefore is not binding on individuals.
✔✔Procedural rule - ✔✔A type of administrative agency rule that prescribes procedures
for agency operations, legislative rule making and adjudication proceedings.
✔✔Standing to sue - ✔✔A party's right to sue, as one who has suffered or will suffer a
legal wrong or an adverse effect from an action.
✔✔Final order - ✔✔An administrative agency's final conclusion or disposition of any
material private right of a party, terminating an agency proceeding.
✔✔Exhaustion of administrative remedies - ✔✔The completion of all possible
administrative procedures and appeals in a case; required before a party can appeal an
agency action to a court.
✔✔Contract - ✔✔A legally enforceable agreement between two or more parties in which
each party makes some promise to the other.
✔✔Promisor - ✔✔The party to a contract making a promise.
✔✔Promisee - ✔✔The party to a contract to whom a promise is made.
✔✔Privity of contract - ✔✔The relationship that exists between the parties to a contract.
✔✔Third-party beneficiary - ✔✔A person who is not a party to a contract but who
benefits from it and has a legal right to enforce the contract if it is breached by either of
the contracting parties.
✔✔Breach of contract - ✔✔The failure, without legal excuse, to fulfill a contractual
promise.
, ✔✔Bilateral contract - ✔✔A contract in which each party promises a performance.
✔✔Unilateral contract - ✔✔A contract in which only one party makes a promise or
undertakes the requested performance.
✔✔Executed contract - ✔✔A contract that has been completely performed by both
parties.
✔✔Executory contract - ✔✔A contract that has not been completely performed by one
or both of the parties.
✔✔Express contract - ✔✔A contract whose terms and intentions are explicitly stated.
✔✔Implied contract - ✔✔A contract whose terms and intentions are indicated by the
actions of the parties to the contract and the surrounding circumstances.
✔✔Implied-in-fact contract - ✔✔A contract that is not express but that the parties
presumably intended, either by tacit understanding or by he assumption that it existed.
✔✔Implied-in-law contract - ✔✔An obligation that is not an actual contract but that is
imposed by law because of the parties' conduct or some special relationship between
them or because one ofhtem would otherwise be unjustly enriched.
✔✔Voidable contract - ✔✔A contract that one of the parties can reject (avoid) based on
some circumstance surrounding its execution.
✔✔Void contract - ✔✔An agreement that, despite the parties' intentions, never reaches
contract status and is therefore not legally enforceable or binding.
✔✔Offer - ✔✔A promise that requires some action by the intended recipient to make an
agreement.
✔✔Offeror - ✔✔The party to a contract who promises to give something in return for a
promise or an act by another party.
✔✔Offeree - ✔✔The party to a contract who makes a promise or acts in return for
something offered by another party.
✔✔Counteroffer - ✔✔A proposal an offer makes to an offeror that varies in some
material way from the original offer, resulting in rejection of the original offer and
constituting a new offer.
✔✔Acceptance - ✔✔The assent to an offer that occurs when the party to whom an offer
has been made either agrees to the proposal or does what has been proposed.
