CPCU 530 TEST EXPECTED QUESTIONS WITH VERIFIED
ANSWERS
Question 1.
Defect in manufacture
ANSWER
-The design of the product called for higher quality metal than was used in the construction of
the grill
Question 2.
Complaint
ANSWER
-This must include a requested remedy
Question 3.
Rulemaking function of administrative agencys
ANSWER
-A public hearing is required if request by a government agency or 25 interested individuals
Question 4.
Rights of a shareholder
ANSWER
-approve changes to the company's articles of incorporation
Question 5.
The International Accounting Standards Board
ANSWER
-receives funding from major accounting firms, financial institutions, and industrial companies
1/5
, Question 6.
An Attachment
ANSWER
-gives the creditor legal recourse in the event of payment default
-creates a security interest
Question 7.
Contracts
ANSWER
these may be illegal for the following reasons:
---are contray to constitutional law
---are contrary to statutory law
---are contrary to case law
---are against public law
---contrary to tort law is not a thing
Question 8.
nonbreaching party
ANSWER
-a minor breach of contract may temporarily suspend a duty of performance for these people
Question 9.
True
ANSWER
-One type of consideration is a binding promise
-a promise is not a binding promise if you may not actually ask the person to perform
something
-I promise to hire you if I buy the bed and breakfast
Question 10.
Frustration of purpose
ANSWER
-occurs when an unforeseen event undermines a party's principal purpose for entering into a
contract, and both parties knew of this principal purpose at the time the contract was made
2/5
ANSWERS
Question 1.
Defect in manufacture
ANSWER
-The design of the product called for higher quality metal than was used in the construction of
the grill
Question 2.
Complaint
ANSWER
-This must include a requested remedy
Question 3.
Rulemaking function of administrative agencys
ANSWER
-A public hearing is required if request by a government agency or 25 interested individuals
Question 4.
Rights of a shareholder
ANSWER
-approve changes to the company's articles of incorporation
Question 5.
The International Accounting Standards Board
ANSWER
-receives funding from major accounting firms, financial institutions, and industrial companies
1/5
, Question 6.
An Attachment
ANSWER
-gives the creditor legal recourse in the event of payment default
-creates a security interest
Question 7.
Contracts
ANSWER
these may be illegal for the following reasons:
---are contray to constitutional law
---are contrary to statutory law
---are contrary to case law
---are against public law
---contrary to tort law is not a thing
Question 8.
nonbreaching party
ANSWER
-a minor breach of contract may temporarily suspend a duty of performance for these people
Question 9.
True
ANSWER
-One type of consideration is a binding promise
-a promise is not a binding promise if you may not actually ask the person to perform
something
-I promise to hire you if I buy the bed and breakfast
Question 10.
Frustration of purpose
ANSWER
-occurs when an unforeseen event undermines a party's principal purpose for entering into a
contract, and both parties knew of this principal purpose at the time the contract was made
2/5
