SALESPERSON STUDY GUIDE 2025/2026 QUESTIONS
AND SOLUTIONS GRADED A+ TIP
✔✔Contracts for the sale of good are not valid unless they have 4 required elements:
offer and acceptance, consideration, competent parties and ____ - ✔✔Legal purpose
✔✔An _____ is someone who enters into a contract on the behalf of another party -
✔✔Agent
✔✔Which of the following is not typically found on a contract? - ✔✔Lien waivers
✔✔This type of contract calculates the labor and materials costs, plus an additional fee
over and above the actual costs - ✔✔Cost plus fixed fee
✔✔Can a general be both a general and prime contractor at the same time? - ✔✔Yes
✔✔Does a letter of intent create a legal obligation? - ✔✔No
✔✔_______ supplement drawings and specify types of materials to be used -
✔✔Specifications
✔✔Modifications to a contract include: - ✔✔Field memoranda and clarifications
✔✔The _____ requires that new multifamily housing with 4 or more units be designed
and built to allow access for persons with disabilities - ✔✔Fair Housing Act
✔✔The ________ increases the ability of law enforcement agencies to search
telephone, email communications, medical, financial, and other records - ✔✔Patriot Act
✔✔A _______ is serious, and represents a breach that goes to the heart of the contract
- ✔✔Material
✔✔A ___________ arises when the seller knows the buyer is going to use the product
for a special purpose, ans the buyer relies on the seller's knowledge and
recommendations when selecting a product - ✔✔Warranty of fitness
✔✔A company may call a consumer for up to ________ after the consumer makes an
inquiry or submits an application to the company - ✔✔3 months
✔✔Which of the following allow consumers a three day window in which to cancel a
contract? - ✔✔Truth in Lending, Gift Promotion, Home Solicitation
, ✔✔Is the sale of an insurance policy by an agent considered home solicitation - ✔✔No
✔✔Under the Home Solicitation Act, a buyer has the right to cancel a home solicitation
sale until midnight of the _______ business day after the day on which the buyer signs
an agreement - ✔✔third
✔✔A buyer purchases a product through a home solicitation, and requests immediate
delivery because of an emergency— are they permitted to cancel the purchase if the
goods have been delivered and substantially used?? - ✔✔No
✔✔Which of the following laws is a federal law that allows for cancellation when the
buyer's home is used as security for something other than to purchase or build a home -
✔✔Truth in Lending Act
✔✔Under the ____ the purchase agreement must contain the cancellation notice
stipulating cancellation without penalty any time within 3 days or purchase - ✔✔Gift
Promotion Act
✔✔Cancellation occurs when the buyer either delivers the cancellation notice, or when
the notice is postmarked - ✔✔True
✔✔Under this type of agreement, the secured purchase costs have interest added to
the unpaid balance until the balance is paid - ✔✔Home Improvement Charge
Agreement
✔✔This type of agreement is most like financing a one time purchase, with a series of
equal monthly payments until it is paid off - ✔✔Home Improvement Installment Contract
✔✔Which of the following are required in a home improvement contract - ✔✔Interest
rate, number and schedule of payments, price of goods and services
✔✔Project overhead can include - ✔✔Cost of sanitary facilities, financing cost, cost of
blueprints
✔✔Before the lender will disburse any funds to a general contractoe, subcontractor or
material provider, ______ must be provided - ✔✔Waivers of lien
✔✔4 items of particular importance in a construction loan are: loan commitment, rate
lock, methods of disbursement and: - ✔✔Loan to value ratio
✔✔Construction _________ is the means of compiling all factors that will influence and
contribute to the cost of completing a project - ✔✔Estimating
AND SOLUTIONS GRADED A+ TIP
✔✔Contracts for the sale of good are not valid unless they have 4 required elements:
offer and acceptance, consideration, competent parties and ____ - ✔✔Legal purpose
✔✔An _____ is someone who enters into a contract on the behalf of another party -
✔✔Agent
✔✔Which of the following is not typically found on a contract? - ✔✔Lien waivers
✔✔This type of contract calculates the labor and materials costs, plus an additional fee
over and above the actual costs - ✔✔Cost plus fixed fee
✔✔Can a general be both a general and prime contractor at the same time? - ✔✔Yes
✔✔Does a letter of intent create a legal obligation? - ✔✔No
✔✔_______ supplement drawings and specify types of materials to be used -
✔✔Specifications
✔✔Modifications to a contract include: - ✔✔Field memoranda and clarifications
✔✔The _____ requires that new multifamily housing with 4 or more units be designed
and built to allow access for persons with disabilities - ✔✔Fair Housing Act
✔✔The ________ increases the ability of law enforcement agencies to search
telephone, email communications, medical, financial, and other records - ✔✔Patriot Act
✔✔A _______ is serious, and represents a breach that goes to the heart of the contract
- ✔✔Material
✔✔A ___________ arises when the seller knows the buyer is going to use the product
for a special purpose, ans the buyer relies on the seller's knowledge and
recommendations when selecting a product - ✔✔Warranty of fitness
✔✔A company may call a consumer for up to ________ after the consumer makes an
inquiry or submits an application to the company - ✔✔3 months
✔✔Which of the following allow consumers a three day window in which to cancel a
contract? - ✔✔Truth in Lending, Gift Promotion, Home Solicitation
, ✔✔Is the sale of an insurance policy by an agent considered home solicitation - ✔✔No
✔✔Under the Home Solicitation Act, a buyer has the right to cancel a home solicitation
sale until midnight of the _______ business day after the day on which the buyer signs
an agreement - ✔✔third
✔✔A buyer purchases a product through a home solicitation, and requests immediate
delivery because of an emergency— are they permitted to cancel the purchase if the
goods have been delivered and substantially used?? - ✔✔No
✔✔Which of the following laws is a federal law that allows for cancellation when the
buyer's home is used as security for something other than to purchase or build a home -
✔✔Truth in Lending Act
✔✔Under the ____ the purchase agreement must contain the cancellation notice
stipulating cancellation without penalty any time within 3 days or purchase - ✔✔Gift
Promotion Act
✔✔Cancellation occurs when the buyer either delivers the cancellation notice, or when
the notice is postmarked - ✔✔True
✔✔Under this type of agreement, the secured purchase costs have interest added to
the unpaid balance until the balance is paid - ✔✔Home Improvement Charge
Agreement
✔✔This type of agreement is most like financing a one time purchase, with a series of
equal monthly payments until it is paid off - ✔✔Home Improvement Installment Contract
✔✔Which of the following are required in a home improvement contract - ✔✔Interest
rate, number and schedule of payments, price of goods and services
✔✔Project overhead can include - ✔✔Cost of sanitary facilities, financing cost, cost of
blueprints
✔✔Before the lender will disburse any funds to a general contractoe, subcontractor or
material provider, ______ must be provided - ✔✔Waivers of lien
✔✔4 items of particular importance in a construction loan are: loan commitment, rate
lock, methods of disbursement and: - ✔✔Loan to value ratio
✔✔Construction _________ is the means of compiling all factors that will influence and
contribute to the cost of completing a project - ✔✔Estimating
