CPCU 530 - Practice Exam with expert
feedback 2025 latest
Miguel seeks to insure his personal auto to comply with state regulations. He contacts
an insurance agent who provides Miguel with a personal auto policy with Atlas Motorist
Insurance Company ("Atlas"). Which one of the following best describes the contractual
relationship between Miguel and Atlas?
An express contract
1 multiple choice option
Maria owns a commercial building and places insurance with Bastion Insurance.
Because the annual premium is high, and cash is tight, Maria decides to enter into a
,premium finance agreement with Finance Co. ("Finance"). Under the premium finance
agreement, Finance pays Bastion the full annual premium and Maria pays Finance a
monthly amount for the premium, a fee and interest. At the midpoint of the policy year,
which one of the following best describes Maria's premium finance agreement with
Finance?
A bilateral contract
3 multiple choice options
Daniel offers a ride to Lily, a ten-year-old, and takes her to his house where he locks her
in his cellar and demands money from Lily's parents to secure her return. The parents
agree to pay and Lily is returned, but Daniel never receives the money. He sues Lily's
parents for breach of contract. Which one of the following explains why Daniel's contract
with Lily's parents is not legally binding?
It lacks a legal purpose.
3 multiple choice options
Tool Corporation has operated successfully for decades, but in recent years stiff price
competition from overseas suppliers and a lack of skilled labor at affordable prices have
made the company unprofitable. Tool Company has incurred substantial debt to keep
the operation running and save jobs, but they can no longer access bank financing. Tool
Company believes that it can return to profitability if it reorganizes. Under which chapter
of the bankruptcy code should Tool Corporation file?
Chapter 11
3 multiple choice options
,Located in a small midwestern town, Bin's Deli hires youthful workers and pays hourly
wages. None of their employees are members of a protected class. Which one of the
following legal concepts permits Bin's Deli to release any of its employees at any time
for any reason, or no reason?
Employment at will
3 multiple choice options
Fernanda runs a warehouse in New Jersey. The business is successful because it has
major highway access and is close to major consumer markets. Manufacturers from
around the country store goods bound for Northeastern customers at Fernanda's
warehouse. Given the large amount of goods stored by others in her warehouse,
Fernanda is concerned about her exposure if something happens to the warehouse or
the goods, so she seek advice from a lawyer about how to limit her exposure to loss.
Which one of the following best describes Fernanda's options in addressing this
liability?
UCC Article 7 permits Fernanda to limit her liability through terms in the warehouse
receipt.
3 multiple choice options
In February, Ann contracts with Mahdi to deliver clean garden top soil for $30 a cubic
yard to Mahdi's farm in Pennsylvania. No time for delivery is stated in their contract but
the parties understand that Mahdi wants to use the soil for this year's planting season.
In March, Ann delivers garden soil that is contaminated and Mahdi refuses to pay
because he believes Ann breached their agreement. Which one of the following best
describes how a court would rule on Mahdi's claim that Ann breached their agreement?
, The court would find for Mahdi because Ann's goods are non-conforming.
3 multiple choice options
Diego and Georgia meet in a bar and enjoy cocktails together. Diego has many more
drinks than Georgia and is stumbling and slurring his speech. Sensing an opportunity,
Georgia proposes that Diego sell her his expensive Swiss wristwatch for a mere $100
and Diego agrees. The next day, Georgia appears at Diego's office with $100 asking for
the wristwatch. Which one of the following arguments is best for Diego to avoid the
contract?
Diego lacked capacity to enter into a contract because he was inebriated.
2 multiple choice options
Erin has worked full-time for the last five years as a librarian for a law firm with 100
attorneys located in a large downtown office building. Erin and her husband are happy
to announce that Erin is expecting a baby in six months. She inquires with the law firm's
human resources department about her rights for parental leave under the Family
Medical Leave Act (FMLA). Which one of the following best describes what the law firm
must offer Erin under the FMLA?
The law firm must offer Erin up to 12 weeks of unpaid leave in a 12-month period, with
no loss of accrued employment benefits.
3 multiple choice options
Tile Roofing is a contractor specializing in roof installation for homes and commercial
accounts. Recently several Tile Roofing workers have fallen and suffered significant
injuries because the workers do not have any safety harnesses preventing falls. Under
feedback 2025 latest
Miguel seeks to insure his personal auto to comply with state regulations. He contacts
an insurance agent who provides Miguel with a personal auto policy with Atlas Motorist
Insurance Company ("Atlas"). Which one of the following best describes the contractual
relationship between Miguel and Atlas?
An express contract
1 multiple choice option
Maria owns a commercial building and places insurance with Bastion Insurance.
Because the annual premium is high, and cash is tight, Maria decides to enter into a
,premium finance agreement with Finance Co. ("Finance"). Under the premium finance
agreement, Finance pays Bastion the full annual premium and Maria pays Finance a
monthly amount for the premium, a fee and interest. At the midpoint of the policy year,
which one of the following best describes Maria's premium finance agreement with
Finance?
A bilateral contract
3 multiple choice options
Daniel offers a ride to Lily, a ten-year-old, and takes her to his house where he locks her
in his cellar and demands money from Lily's parents to secure her return. The parents
agree to pay and Lily is returned, but Daniel never receives the money. He sues Lily's
parents for breach of contract. Which one of the following explains why Daniel's contract
with Lily's parents is not legally binding?
It lacks a legal purpose.
3 multiple choice options
Tool Corporation has operated successfully for decades, but in recent years stiff price
competition from overseas suppliers and a lack of skilled labor at affordable prices have
made the company unprofitable. Tool Company has incurred substantial debt to keep
the operation running and save jobs, but they can no longer access bank financing. Tool
Company believes that it can return to profitability if it reorganizes. Under which chapter
of the bankruptcy code should Tool Corporation file?
Chapter 11
3 multiple choice options
,Located in a small midwestern town, Bin's Deli hires youthful workers and pays hourly
wages. None of their employees are members of a protected class. Which one of the
following legal concepts permits Bin's Deli to release any of its employees at any time
for any reason, or no reason?
Employment at will
3 multiple choice options
Fernanda runs a warehouse in New Jersey. The business is successful because it has
major highway access and is close to major consumer markets. Manufacturers from
around the country store goods bound for Northeastern customers at Fernanda's
warehouse. Given the large amount of goods stored by others in her warehouse,
Fernanda is concerned about her exposure if something happens to the warehouse or
the goods, so she seek advice from a lawyer about how to limit her exposure to loss.
Which one of the following best describes Fernanda's options in addressing this
liability?
UCC Article 7 permits Fernanda to limit her liability through terms in the warehouse
receipt.
3 multiple choice options
In February, Ann contracts with Mahdi to deliver clean garden top soil for $30 a cubic
yard to Mahdi's farm in Pennsylvania. No time for delivery is stated in their contract but
the parties understand that Mahdi wants to use the soil for this year's planting season.
In March, Ann delivers garden soil that is contaminated and Mahdi refuses to pay
because he believes Ann breached their agreement. Which one of the following best
describes how a court would rule on Mahdi's claim that Ann breached their agreement?
, The court would find for Mahdi because Ann's goods are non-conforming.
3 multiple choice options
Diego and Georgia meet in a bar and enjoy cocktails together. Diego has many more
drinks than Georgia and is stumbling and slurring his speech. Sensing an opportunity,
Georgia proposes that Diego sell her his expensive Swiss wristwatch for a mere $100
and Diego agrees. The next day, Georgia appears at Diego's office with $100 asking for
the wristwatch. Which one of the following arguments is best for Diego to avoid the
contract?
Diego lacked capacity to enter into a contract because he was inebriated.
2 multiple choice options
Erin has worked full-time for the last five years as a librarian for a law firm with 100
attorneys located in a large downtown office building. Erin and her husband are happy
to announce that Erin is expecting a baby in six months. She inquires with the law firm's
human resources department about her rights for parental leave under the Family
Medical Leave Act (FMLA). Which one of the following best describes what the law firm
must offer Erin under the FMLA?
The law firm must offer Erin up to 12 weeks of unpaid leave in a 12-month period, with
no loss of accrued employment benefits.
3 multiple choice options
Tile Roofing is a contractor specializing in roof installation for homes and commercial
accounts. Recently several Tile Roofing workers have fallen and suffered significant
injuries because the workers do not have any safety harnesses preventing falls. Under
