CPCU 530 LATEST 2026 TEST PAPER QUESTIONS AND
ANSWERS GRADED A+
✔✔Anna is the lawyer for the plaintiff in a jury trial. She is preparing her opening
statement. Which one of the following correctly describes what Anna should do during
her opening statement?
Select one:
A. During her opening statement, Anna should instruct the jury about any applicable
laws.
B. During her opening statement, Anna should present a summary of what she expects
to prove.
C. During her opening statement, Anna should challenge the testimony and evidence of
the defendant.
D. During her opening statement, Anna present a summary of all of the evidence that
she plans to present. - ✔✔B. During her opening statement, Anna should present a
summary of what she expects to prove.
During her opening statement, Anna should present a summary of what she expects to
prove. She should summarize the evidence during her closing statement.
✔✔A complete contract of sale for real property usually includes which one of the
following elements?
Select one:
A. Oral agreement
B. Warranty deed
C. Nonessential terms
D. Definition of conditions - ✔✔C. Nonessential terms
Certain terms are nonessential but are usually covered in a complete contract of sale,
such as time of closing and payment terms.
✔✔Merve filed for bankruptcy a few years ago. One of the debts included in her
bankruptcy was a car loan financed by Lending Bank for $8,000. Which one of the
following must Merve do to enforce a new promise to pay this debt and make payments
once again on this contract?
Select one:
A. She must acknowledge the debt.
B. No additional consideration is required.
C. She must make no additional promises to pay.
D. She must pay additional consideration. - ✔✔B. No additional consideration is
required.
A new promise to pay a debt barred by bankruptcy is enforceable without any additional
consideration.
,✔✔In a class action lawsuit involving an insurer's claim practices, the court must
consider the elements of
Select one:
A. Functionality, commonality, adequacy of representation, and number of plaintiffs.
B. Numerosity, commonality, typicality, and adequacy of representation.
C. Extent of harm, numerosity, commonality, and venue of plaintiffs.
D. Intentionality, commonality, extent of harm, and venue of the defendant. - ✔✔B.
Numerosity, commonality, typicality, and adequacy of representation.
In this type of a class action the court must consider the elements of numerosity,
commonality, typicality, and adequacy of representation. The named parties must fairly
and adequately protect the interests of unnamed class members.
✔✔Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures. When
Karl woke up, he refused other medical services and he also indicated that he could not
be held liable for any expenses that he did not personally authorize or to which he did
not consent. It is likely that Karl might be required to pay the reasonable value of the
services received based on
Select one:
A. A unilateral contract.
B. An implied-in-law contract.
C. An executory contract.
D. An implied-in-fact contract. - ✔✔B. An implied-in-law contract.
This is typical of an implied-in-law contract and not of an implied-in-fact, unilateral, or
executory contract. If a doctor renders professional services to an unconscious person
then the law might obligate the patient to pay for those services based on an implied-in-
law contract, to avoid unjust enrichment.
✔✔Which one of the following most accurately describes the ability of an offeror to
revoke an offer made to an individual offeree?
Select one:
A. An offeror can revoke an offer any time before acceptance, but must do so through
the same means of communication used in making the original offer.
B. An offeror can revoke an offer either by expressly refusing to abide by it or by making
a new offer to the offeree.
C. An offeror can revoke an offer by any reasonable means, at any time before the
offeree completes performance of the contract.
D. An offeror can revoke an offer any time before acceptance, but the revocation is
effective only when communicated to the offeree and the offeree actually receives the
communication. - ✔✔D. An offeror can revoke an offer any time before acceptance, but
the revocation is effective only when communicated to the offeree and the offeree
actually receives the communication.
,An offeror can revoke an offer any time before acceptance, but the revocation is
effective only when communicated to the offeree and the offeree actually receives the
communication.
✔✔Once an offer is terminated due to a lapse of time, any attempted acceptance
Select one:
A. Is invalid, and is not binding on the offeror or the offeree, and has no legal effect.
B. Becomes a counteroffer, which the original offeror can accept, reject, or unilaterally
modify.
C. Becomes a counteroffer, which the original offeror can either accept or reject.
D. Is valid, as long as it unconditionally and unequivocally accepts the terms of the
original offer. - ✔✔C. Becomes a counteroffer, which the original offeror can either
accept or reject.
Once an offer is terminated due to a lapse of time, any attempted acceptance becomes
a counteroffer, which the original offeror can either accept or reject.
✔✔On June 1, Tobias mailed a signed offer to Emilia to purchase her set of antique
ivory forks. The offer stated that it was open for one week. Emilia received the offer on
June 4, thought the price was fair, and signed her name on the offer to indicate her
acceptance. On June 6, Emilia died. The executor of Emilia's estate found the offer with
Emilia's signature of acceptance on June 7 and mailed it to Tobias that day. On June 8,
a law went into effect that prohibited the sale of ivory in any form from that day forward.
Tobias received the signed offer on June 10. Which one of the following best explains
why Tobias and Emilia do not have an enforceable contract?
Select one:
A. Tobias's offer lapsed because Emilia did not communicate her acceptance before
June 8.
B. Tobias's offer lapsed because he did not receive Emilia's acceptance before June 8.
C. Tobias's offer terminated as an operation of law upon the passage of - ✔✔A.
Tobias's offer lapsed because Emilia did not communicate her acceptance before June
8.
Tobias's offer lapsed because Emilia did not communicate her acceptance before June
8. An estate cannot accept the pre-death offer.
✔✔Ella's Heart Fund relied on donations to support her local heart clinic. Luke pledged
$1,500 to the charitable organization. Luke did not honor the pledge. Which one of the
following legal doctrines would courts apply if they decide to enforce the pledge?
Select one:
A. Gift allowances
B. Promise to perform an existing obligation
C. Bona fide dispute
D. Promissory estoppel - ✔✔D. Promissory estoppel
, Some courts apply the doctrine of promissory estoppel to charitable subscriptions on
the basis that the organization has relied on the pledge to its detriment by undertaking
projects the pledge would support and that injustice would result if the promise was not
enforced. Promissory estoppel is sometimes described as a substitute for consideration
(enforcement of a promise without consideration). In brief, promissory estoppel's
elements are: a promise, justifiable reliance on the promise resulting in detriment, and
only enforcement of the promise achieves justice.
✔✔In an attempt to improve school spirit, ABC College organized a "Dean Clown"
initiative. If the whole student 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 contract is enforceable except for the salary forfeiture provision, which is
unconscionable.
B. The agreement is completely unenforceable, because it is a wagering contract.
C. T - ✔✔A. The contract is enforceable except for the salary forfeiture provision, which
is unconscionable.
The contract is enforceable except for the salary forfeiture provision, which is
unconscionable. Courts do not enforce contracts containing provisions so harsh and
unfair that they cause undue suffering to the party resisting performance.
✔✔Any contract allowing a lender more than the maximum legal interest is a usury
contract and is therefore illegal. Which one of the following is true in most states if a
lender is charging an illegally high rate of interest on a loan?
Select one:
A. The lender may not collect either the principal or the lost interest.
B. The lender may collect the principal but is fined for usury action equal to the
exorbitant rate of interest previously charged.
C. The lender may collect the principal but is barred from collecting the interest.
D. The lender may collect the principal and the lowest market interest rate. - ✔✔C. The
lender may collect the principal but is barred from collecting the interest.
In most states, a lender who has charged an illegal rate is barred from collecting interest
on the loan but can still obtain the principal amount loaned.
✔✔Nancy suffered a loss and contacted her insurer, Autumn Co. Autumn Co. sent a
nonwaiver agreement to Nancy's workplace, but she refused to sign. Autumn Co. then
attempted to send a reservation of rights letter to Nancy's residence, but it accidentally
sent the letter to the wrong address. Autumn Co. also sent a letter to Nancy's boyfriend,
ANSWERS GRADED A+
✔✔Anna is the lawyer for the plaintiff in a jury trial. She is preparing her opening
statement. Which one of the following correctly describes what Anna should do during
her opening statement?
Select one:
A. During her opening statement, Anna should instruct the jury about any applicable
laws.
B. During her opening statement, Anna should present a summary of what she expects
to prove.
C. During her opening statement, Anna should challenge the testimony and evidence of
the defendant.
D. During her opening statement, Anna present a summary of all of the evidence that
she plans to present. - ✔✔B. During her opening statement, Anna should present a
summary of what she expects to prove.
During her opening statement, Anna should present a summary of what she expects to
prove. She should summarize the evidence during her closing statement.
✔✔A complete contract of sale for real property usually includes which one of the
following elements?
Select one:
A. Oral agreement
B. Warranty deed
C. Nonessential terms
D. Definition of conditions - ✔✔C. Nonessential terms
Certain terms are nonessential but are usually covered in a complete contract of sale,
such as time of closing and payment terms.
✔✔Merve filed for bankruptcy a few years ago. One of the debts included in her
bankruptcy was a car loan financed by Lending Bank for $8,000. Which one of the
following must Merve do to enforce a new promise to pay this debt and make payments
once again on this contract?
Select one:
A. She must acknowledge the debt.
B. No additional consideration is required.
C. She must make no additional promises to pay.
D. She must pay additional consideration. - ✔✔B. No additional consideration is
required.
A new promise to pay a debt barred by bankruptcy is enforceable without any additional
consideration.
,✔✔In a class action lawsuit involving an insurer's claim practices, the court must
consider the elements of
Select one:
A. Functionality, commonality, adequacy of representation, and number of plaintiffs.
B. Numerosity, commonality, typicality, and adequacy of representation.
C. Extent of harm, numerosity, commonality, and venue of plaintiffs.
D. Intentionality, commonality, extent of harm, and venue of the defendant. - ✔✔B.
Numerosity, commonality, typicality, and adequacy of representation.
In this type of a class action the court must consider the elements of numerosity,
commonality, typicality, and adequacy of representation. The named parties must fairly
and adequately protect the interests of unnamed class members.
✔✔Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures. When
Karl woke up, he refused other medical services and he also indicated that he could not
be held liable for any expenses that he did not personally authorize or to which he did
not consent. It is likely that Karl might be required to pay the reasonable value of the
services received based on
Select one:
A. A unilateral contract.
B. An implied-in-law contract.
C. An executory contract.
D. An implied-in-fact contract. - ✔✔B. An implied-in-law contract.
This is typical of an implied-in-law contract and not of an implied-in-fact, unilateral, or
executory contract. If a doctor renders professional services to an unconscious person
then the law might obligate the patient to pay for those services based on an implied-in-
law contract, to avoid unjust enrichment.
✔✔Which one of the following most accurately describes the ability of an offeror to
revoke an offer made to an individual offeree?
Select one:
A. An offeror can revoke an offer any time before acceptance, but must do so through
the same means of communication used in making the original offer.
B. An offeror can revoke an offer either by expressly refusing to abide by it or by making
a new offer to the offeree.
C. An offeror can revoke an offer by any reasonable means, at any time before the
offeree completes performance of the contract.
D. An offeror can revoke an offer any time before acceptance, but the revocation is
effective only when communicated to the offeree and the offeree actually receives the
communication. - ✔✔D. An offeror can revoke an offer any time before acceptance, but
the revocation is effective only when communicated to the offeree and the offeree
actually receives the communication.
,An offeror can revoke an offer any time before acceptance, but the revocation is
effective only when communicated to the offeree and the offeree actually receives the
communication.
✔✔Once an offer is terminated due to a lapse of time, any attempted acceptance
Select one:
A. Is invalid, and is not binding on the offeror or the offeree, and has no legal effect.
B. Becomes a counteroffer, which the original offeror can accept, reject, or unilaterally
modify.
C. Becomes a counteroffer, which the original offeror can either accept or reject.
D. Is valid, as long as it unconditionally and unequivocally accepts the terms of the
original offer. - ✔✔C. Becomes a counteroffer, which the original offeror can either
accept or reject.
Once an offer is terminated due to a lapse of time, any attempted acceptance becomes
a counteroffer, which the original offeror can either accept or reject.
✔✔On June 1, Tobias mailed a signed offer to Emilia to purchase her set of antique
ivory forks. The offer stated that it was open for one week. Emilia received the offer on
June 4, thought the price was fair, and signed her name on the offer to indicate her
acceptance. On June 6, Emilia died. The executor of Emilia's estate found the offer with
Emilia's signature of acceptance on June 7 and mailed it to Tobias that day. On June 8,
a law went into effect that prohibited the sale of ivory in any form from that day forward.
Tobias received the signed offer on June 10. Which one of the following best explains
why Tobias and Emilia do not have an enforceable contract?
Select one:
A. Tobias's offer lapsed because Emilia did not communicate her acceptance before
June 8.
B. Tobias's offer lapsed because he did not receive Emilia's acceptance before June 8.
C. Tobias's offer terminated as an operation of law upon the passage of - ✔✔A.
Tobias's offer lapsed because Emilia did not communicate her acceptance before June
8.
Tobias's offer lapsed because Emilia did not communicate her acceptance before June
8. An estate cannot accept the pre-death offer.
✔✔Ella's Heart Fund relied on donations to support her local heart clinic. Luke pledged
$1,500 to the charitable organization. Luke did not honor the pledge. Which one of the
following legal doctrines would courts apply if they decide to enforce the pledge?
Select one:
A. Gift allowances
B. Promise to perform an existing obligation
C. Bona fide dispute
D. Promissory estoppel - ✔✔D. Promissory estoppel
, Some courts apply the doctrine of promissory estoppel to charitable subscriptions on
the basis that the organization has relied on the pledge to its detriment by undertaking
projects the pledge would support and that injustice would result if the promise was not
enforced. Promissory estoppel is sometimes described as a substitute for consideration
(enforcement of a promise without consideration). In brief, promissory estoppel's
elements are: a promise, justifiable reliance on the promise resulting in detriment, and
only enforcement of the promise achieves justice.
✔✔In an attempt to improve school spirit, ABC College organized a "Dean Clown"
initiative. If the whole student 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 contract is enforceable except for the salary forfeiture provision, which is
unconscionable.
B. The agreement is completely unenforceable, because it is a wagering contract.
C. T - ✔✔A. The contract is enforceable except for the salary forfeiture provision, which
is unconscionable.
The contract is enforceable except for the salary forfeiture provision, which is
unconscionable. Courts do not enforce contracts containing provisions so harsh and
unfair that they cause undue suffering to the party resisting performance.
✔✔Any contract allowing a lender more than the maximum legal interest is a usury
contract and is therefore illegal. Which one of the following is true in most states if a
lender is charging an illegally high rate of interest on a loan?
Select one:
A. The lender may not collect either the principal or the lost interest.
B. The lender may collect the principal but is fined for usury action equal to the
exorbitant rate of interest previously charged.
C. The lender may collect the principal but is barred from collecting the interest.
D. The lender may collect the principal and the lowest market interest rate. - ✔✔C. The
lender may collect the principal but is barred from collecting the interest.
In most states, a lender who has charged an illegal rate is barred from collecting interest
on the loan but can still obtain the principal amount loaned.
✔✔Nancy suffered a loss and contacted her insurer, Autumn Co. Autumn Co. sent a
nonwaiver agreement to Nancy's workplace, but she refused to sign. Autumn Co. then
attempted to send a reservation of rights letter to Nancy's residence, but it accidentally
sent the letter to the wrong address. Autumn Co. also sent a letter to Nancy's boyfriend,
