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GPCU 530 EXAM NEWEST 2026 ACTUAL EXAM
COMPLETE QUESTIONS AND 100% CORRECT
DETAILED ANSWERS (VERIFIED AND GRADED
A+||BRAND NEW!!!!!
Which one of the following is a circumstance that is likely
to make an exculpatory clause in a contract
unenforceable?
Select one:
A. When it is part of a requirements contract
B. When one party is a charitable organization
C. When it is associated with an existing obligation
D. When the complaining party has a bargaining
disadvantage - ANSWER-D. When the complaining party
has a bargaining disadvantage
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arolina was a counterfeiter. She sought a property
insurance policy on the warehouse where her
counterfeiting operations took place, as well as a business
interruption insurance policy on the operations
themselves. Both Carolina and her insurance producer
believed that these policies would be valid and
enforceable. They also both incorrectly believed that the
property insurance policy covered lightning strikes.
Lightning was extremely rare in Carolina's area and had
never caused damage to any buildings in the past. Which
one of the following statements is true?
Select one:
A. The property policy is voidable by either party, and the
business interruption policy is void.
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B. Both policies are void because they involve the
coverage of illegal activities.
C. The property policy is enforceable, and the business
interruption policy is void.
D. Both the property insurance policy and the business
interruption policy are voida - ANSWER-C. The property
policy is enforceable, and the business interruption policy
is void.
Insurance contracts must involve legal subject matter. But
if the insurance is only incidental to an illegal purpose,
then the contract is enforceable.
In an attempt to improve school spirit, ABC College
organized a "Dean Clown" initiative. If the whole student
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body finished the school year with sufficiently high grades,
then the dean would dress like a clown for an entire
semester. To affect this scheme, ABC College entered
into a contract with the dean. Under the contract, ABC
College promised to increase the dean's annual salary by
two percent, and the dean promised to participate in the
College's plan. The dean also agreed to forfeit his entire
salary for five years if he breached the contract. But when
the time came, the dean refused to play along and further
refused to forfeit his salary. Which one of the following
best describes the enforceability of this contract?
Select one:
A. The agreement is completely unenforceable, because it
was made for an unlawful purpose—that is, to commit a
tort against the dean.
GPCU 530 EXAM NEWEST 2026 ACTUAL EXAM
COMPLETE QUESTIONS AND 100% CORRECT
DETAILED ANSWERS (VERIFIED AND GRADED
A+||BRAND NEW!!!!!
Which one of the following is a circumstance that is likely
to make an exculpatory clause in a contract
unenforceable?
Select one:
A. When it is part of a requirements contract
B. When one party is a charitable organization
C. When it is associated with an existing obligation
D. When the complaining party has a bargaining
disadvantage - ANSWER-D. When the complaining party
has a bargaining disadvantage
,2|Page
arolina was a counterfeiter. She sought a property
insurance policy on the warehouse where her
counterfeiting operations took place, as well as a business
interruption insurance policy on the operations
themselves. Both Carolina and her insurance producer
believed that these policies would be valid and
enforceable. They also both incorrectly believed that the
property insurance policy covered lightning strikes.
Lightning was extremely rare in Carolina's area and had
never caused damage to any buildings in the past. Which
one of the following statements is true?
Select one:
A. The property policy is voidable by either party, and the
business interruption policy is void.
,3|Page
B. Both policies are void because they involve the
coverage of illegal activities.
C. The property policy is enforceable, and the business
interruption policy is void.
D. Both the property insurance policy and the business
interruption policy are voida - ANSWER-C. The property
policy is enforceable, and the business interruption policy
is void.
Insurance contracts must involve legal subject matter. But
if the insurance is only incidental to an illegal purpose,
then the contract is enforceable.
In an attempt to improve school spirit, ABC College
organized a "Dean Clown" initiative. If the whole student
, 4|Page
body finished the school year with sufficiently high grades,
then the dean would dress like a clown for an entire
semester. To affect this scheme, ABC College entered
into a contract with the dean. Under the contract, ABC
College promised to increase the dean's annual salary by
two percent, and the dean promised to participate in the
College's plan. The dean also agreed to forfeit his entire
salary for five years if he breached the contract. But when
the time came, the dean refused to play along and further
refused to forfeit his salary. Which one of the following
best describes the enforceability of this contract?
Select one:
A. The agreement is completely unenforceable, because it
was made for an unlawful purpose—that is, to commit a
tort against the dean.
