CPCU 530 Practice Test Questions with Correct Answers

CPCU 530 Practice Test Questions with Correct Answers Which one of the following is the primary way that formal mediation differs from a pretrial settlement conference? - Answer-Formal mediation requires the parties to submit their dispute to an agreed-upon outside mediator, but the parties do not necessarily select who will conduct a pretrial settlement conference. (Incorrect. Though mediators, formal and informal, are often judges, formal mediation involves seeking the assistance of a neutral intermediary to assist the resolution of the dispute.) The state court is dealing with a case involving an unusual domestic animal. They can find no prior case or previous law that directly applies, in their state or any other state. This case is known as a - Answer-Threshold case. (When courts encounter situations for which they can find no prior case or previous law that directly applies, the unprecedented situations are called threshold cases.) Jack was the defendant in a lawsuit against Emily. Emily's properly-formed complaint alleged that Jack made a series of embarrassing mistakes that led to the accidental destruction of Emily's boat. The way Jack remembers it, Emily sunk her own boat with her own incompetence. Jack disputes almost every one of Emily's allegations. Aside from voluntary dismissal by Emily, is there any way Jack can win the case before trial? - Answer-No, because Jack disputes Emily's allegations. (A motion to dismiss argues that the plaintiff has failed to state a claim upon which relief can be granted and a motion for judgment on the pleadings generally requires an admission of the other party's facts and allegations.) The U.S. constitutional system is one of various checks and balances to governmental power. Which one of the following describes how the legislative branch checks the judicial branch? - Answer-The legislative branch has the power to approve or deny the executive appointment of judges, and it has the ability to pass constitutional laws that may negate judicial decisions. (The legislative branch has the power to approve or deny the executive appointment of judges, and it has the ability to pass constitutional laws that may negate judicial decisions.) Which one of the following legal systems relies on scholarly interpretations of written codes and constitutions, rather than on court decisions? - Answer-The civil-law system (The civil-law system relies on scholarly interpretations of written codes and constitutions, rather than on court decisions. ("Common-law system" vs. "civil-law system" should not be confused with "criminal law" vs. "civil law." The former describe entire legal systems, while the latter describe classifications of U.S. law.) The Twenty-sixth Amendment to the U.S. Constitution sets the minimum voting age at 18. Assume that, after the amendment was ratified, the U.S. Congress passed a law that prohibited the right to vote for anyone under the age of 21 who had not registered for military conscription. West Virginia likewise passed a law that limited the minimum voting age to 19 for all West Virginia citizens. The U.S. President then issued an Executive Order that forbade any person under the age of 20 with unpaid traf - Answer18 (The earliest legal voting age for a West Virginia citizen with unpaid traffic tickets who had not registered for military conscription is 18. Any law that violates the U.S. Constitution, whether state or federal, is void.) Scott is presented as a witness for the plaintiff in a trail. Carla, the plaintiff, alleges that she was seriously injured when she was struck by a vehicle driven by Luke, who was under the influence of alcohol at the time. Scott testifies that Luke had been drinking heavily at happy hour on the day of the accident. Under cross-examination, Scott admits that he was not actually at the happy hour, but that a number of co-workers had told him about Luke's drinking that day. Scott's testimony may b - Answer-Competent (Scott's testimony may be challenged on the basis of competence. He is repeating a statement (hearsay), but does not have personal knowledge of whether the statement is true.) Which one of the following most accurately describes the role of the mediator in alternative dispute resolution? - Answer-A mediator is a neutral third party who acts as a catalyst to help parties analyze their dispute, consider possible solutions, and devise a compromise formula. (A mediator is a neutral third party who acts as a catalyst to help parties analyze their dispute, consider possible solutions, and devise a compromise formula.) Under contract law, the improper use of power or trust to deprive a person of free will and to substitute his or her objective with someone else's is called - Answer-Undue influence. (The improper use of power or trust to deprive a person of free will and to substitute his or her objective with someone else's is undue influence. Fraud is the misrepresentation of facts that causes harm to another. Duress is the use of restraint, violence, threats of violence, or wrongful pressure to compel a party to act contrary to his or her wishes or interests. Innocent misrepresentation is similar to fraud but without intention.) Katie purchased several hundred acres and was considering building houses on the land and turning it into a residential subdivision. Katie made a contract with Leah, whereby Leah promised to do all plumbing work Katie needed in the subdivision, and Katie promised to only hire Leah if she decided to build houses on the land. This contract is - Answer-Unenforceable, for lack of valid consideration. (This contract is unenforceable, for lack of valid consideration. A party's promise to pay for any work it might request of another party is not binding because the promisor might ask for no work. (Requirements contracts and output contracts can be exceptions.) Which one of the following most accurately describes the ability of an offeror to revoke an offer made to an individual offeree? - Answer-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.) Carolina 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 b - Answer-The property policy is enforceable, and the business interruption policy is void. (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.) Margaret, who had been drinking all evening at a business meeting, signed and mailed a written offer to sell 1,000 shares of a particular stock to Frank which, unknown to her, would make Frank the majority shareholder in that company's stock. Frank was unaware that Margaret had been intoxicated at the time she formed the contract. Under these circumstances Margaret - Answer-Cannot avoid the contract. (Margaret can attempt to avoid the contract but Frank can claim lack of knowledge of Margaret's condition and most likely the contract will be enforced.) Brenda offered to sell her collection of gemstones to Jolene for $25,000, and Jolene told her brother Kevin about Brenda's offer. When Jolene died in an auto accident, Kevin, as executor of Jolene's estate, tried to accept Brenda's offer to sell the collection. Kevin's acceptance on behalf of the estate is - Answer-Not enforceable because the offeror has the right to choose with whom to contract. (Kevin's acceptance on behalf of the estate is not enforceable because the offeror has the right to choose with whom to contract.) A contract has been formed for the construction of a shopping mall. The company representing the shopping mall has made a payment of $10,000. Which one of the following is the type of consideration is this payment? - Answer-Valuable (This is a valuable consideration; necessary and sufficient to support a valid contract. Other types of consideration: forbearance, present consideration, future consideration, and binding promise (ex., a promisor's agreement to buy from the promisee all the coal the promisor requires during a specified period)