CPCU 530 Exam Questions With 100%
Correct Answers Already Graded A+
Latest and Complete Version 2025
Juan's Accounting wants to upgrade its software program. It has been working with
Jane's Software Company to select the upgrades that will meet its business needs
and Juan's Accounting is ready to make an offer. Which one of the following sets
of elements must be included to constitute a legal offer?
Select one:
A. Legal purpose, period of time the offer is valid, and acceptance terms
B. Period of time the offer is valid, acceptance options, and intent to contract
C. Intent to contract, definite terms, and communication to the offeree
D. Legal purpose, definite terms, and options for the offeree - ANSWER: C. Intent
to contract, definite terms, and communication to the offeree
Franklin says to Dorian: "I will sell you 15 dog collars in any color at $10.00 each
if you give me the money by Saturday." Which one of the following statements
constitutes an unconditional and unequivocal acceptance by Dorian?
Select one:
A. I will buy the collars on Sunday when I coe over to your house.
B. I hope to have the money this weekend to buy the dog collars you are selling if I
am able to get to the bank.
C. I accept. I will buy 15 dog collars at $8.00 each on Saturday.
D. I accept. I will buy the collars on or before Saturday with the color of the collars
to be worked out. - ANSWER: D. I accept. I will buy the collars on or before
Saturday with the color of the collars to be worked out.
Ruth told Eric that she will sell her inventory to him for $30,000. Eric responded to
her offer saying, "Your price is ridiculous, but I must have the inventory. Enclosed
is a check for $30,000, but I really think this is unfair." Which one of the following
,statements it true regarding whether there has been a legally enforceable
acceptance of an offer to contract?
Select one:
A. There has been valid acceptance, but a court will have to determine Eric's intent.
B. There has been valid acceptance, because complaining has no effect.
C. There has been no acceptance, because an acceptance must be unequivocal.
D. Acceptance cannot be determined, because Eric's protest created a conditional
acceptance. - ANSWER: B. There has been valid acceptance, because
complaining has no effect.
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
,6|Page
Select one:
A. Not enforceable because the acceptance must be unconditional and unequivocal.
B. Not enforceable because the offeror has the right to choose with whom to
contract.
C. Enforceable because of Brenda's intent to contract with Jolene.
D. Enforceable since Kevin did not deviate from the original terms of the offer. -
ANSWER: B. Not enforceable because the offeror has the right to choose with
whom to contract.
Tony got married at age 15, and then divorced only six months later. While still a
minor, Tony was providing child support to his ex-wife. If Tony ceases to provide
child support and his ex-wife sues him, it is likely that Tony
Select one:
A. Will not be required to pay child support until he reaches the age of majority.
B. Will only be required to provide child support based on his age and his income.
C. Will be required to continue to provide child support
D. Will not be obligated to pay because he is still a minor. - ANSWER: C. Will be
required to continue to provide child support
Which one of the following is true regarding the capacity of a minor to contract?
Select one:
A. A minor cannot avoid a contract when he or she misrepresents his or her age.
B. A parent is always liable for a minor child's contract.
C. A minor can challenge a contract and retain the benefits of the contract.
D. A minor must fulfill his or her obligation under a contract for necessaries. -
ANSWER: D. A minor must fulfill his or her obligation under a contract for
necessaries.
, 7|Page
Persons claiming insanity may avoid a contract when
Select one:
A. They were experiencing a delusion.
B. The contract is for necessaries.
C. The contract was formed during an interval of time in which two or more
independent third parties are willing to attest to the person's inability to contract.
D. They did not know that a contract was forming or they did not understand the
legal consequences of acts purporting to form the contract. - ANSWER: D. They
did not know that a contract was forming or they did not understand the legal
consequences of acts purporting to form the contract.
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 correctly describes whether Merve must do anything before Lending
Back can enforce a new promise by Merve to pay this debt and make payments
once again on this contract?
Select one:
A. Merve need provide no additional consideration.
B. Merve must make no additional promises to pay.
C. Merve must acknowledge the debt.
D. Merve must pay additional consideration. - ANSWER: A. Merve need provide
no additional consideration.
Jessica, age 21, promised a 1995 Ford as a gift to her friend, Michelle, age 50.
Which one of the following is the missing element that would make this gift
transaction a contract?
Select one:
A. ConsiderationCorrect. Consideration makes a promise a contract. A promise to
make a gift or to do something without receiving consideration in return is not
enforceable. It is merely a gratuitous promise.
Correct Answers Already Graded A+
Latest and Complete Version 2025
Juan's Accounting wants to upgrade its software program. It has been working with
Jane's Software Company to select the upgrades that will meet its business needs
and Juan's Accounting is ready to make an offer. Which one of the following sets
of elements must be included to constitute a legal offer?
Select one:
A. Legal purpose, period of time the offer is valid, and acceptance terms
B. Period of time the offer is valid, acceptance options, and intent to contract
C. Intent to contract, definite terms, and communication to the offeree
D. Legal purpose, definite terms, and options for the offeree - ANSWER: C. Intent
to contract, definite terms, and communication to the offeree
Franklin says to Dorian: "I will sell you 15 dog collars in any color at $10.00 each
if you give me the money by Saturday." Which one of the following statements
constitutes an unconditional and unequivocal acceptance by Dorian?
Select one:
A. I will buy the collars on Sunday when I coe over to your house.
B. I hope to have the money this weekend to buy the dog collars you are selling if I
am able to get to the bank.
C. I accept. I will buy 15 dog collars at $8.00 each on Saturday.
D. I accept. I will buy the collars on or before Saturday with the color of the collars
to be worked out. - ANSWER: D. I accept. I will buy the collars on or before
Saturday with the color of the collars to be worked out.
Ruth told Eric that she will sell her inventory to him for $30,000. Eric responded to
her offer saying, "Your price is ridiculous, but I must have the inventory. Enclosed
is a check for $30,000, but I really think this is unfair." Which one of the following
,statements it true regarding whether there has been a legally enforceable
acceptance of an offer to contract?
Select one:
A. There has been valid acceptance, but a court will have to determine Eric's intent.
B. There has been valid acceptance, because complaining has no effect.
C. There has been no acceptance, because an acceptance must be unequivocal.
D. Acceptance cannot be determined, because Eric's protest created a conditional
acceptance. - ANSWER: B. There has been valid acceptance, because
complaining has no effect.
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
,6|Page
Select one:
A. Not enforceable because the acceptance must be unconditional and unequivocal.
B. Not enforceable because the offeror has the right to choose with whom to
contract.
C. Enforceable because of Brenda's intent to contract with Jolene.
D. Enforceable since Kevin did not deviate from the original terms of the offer. -
ANSWER: B. Not enforceable because the offeror has the right to choose with
whom to contract.
Tony got married at age 15, and then divorced only six months later. While still a
minor, Tony was providing child support to his ex-wife. If Tony ceases to provide
child support and his ex-wife sues him, it is likely that Tony
Select one:
A. Will not be required to pay child support until he reaches the age of majority.
B. Will only be required to provide child support based on his age and his income.
C. Will be required to continue to provide child support
D. Will not be obligated to pay because he is still a minor. - ANSWER: C. Will be
required to continue to provide child support
Which one of the following is true regarding the capacity of a minor to contract?
Select one:
A. A minor cannot avoid a contract when he or she misrepresents his or her age.
B. A parent is always liable for a minor child's contract.
C. A minor can challenge a contract and retain the benefits of the contract.
D. A minor must fulfill his or her obligation under a contract for necessaries. -
ANSWER: D. A minor must fulfill his or her obligation under a contract for
necessaries.
, 7|Page
Persons claiming insanity may avoid a contract when
Select one:
A. They were experiencing a delusion.
B. The contract is for necessaries.
C. The contract was formed during an interval of time in which two or more
independent third parties are willing to attest to the person's inability to contract.
D. They did not know that a contract was forming or they did not understand the
legal consequences of acts purporting to form the contract. - ANSWER: D. They
did not know that a contract was forming or they did not understand the legal
consequences of acts purporting to form the contract.
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 correctly describes whether Merve must do anything before Lending
Back can enforce a new promise by Merve to pay this debt and make payments
once again on this contract?
Select one:
A. Merve need provide no additional consideration.
B. Merve must make no additional promises to pay.
C. Merve must acknowledge the debt.
D. Merve must pay additional consideration. - ANSWER: A. Merve need provide
no additional consideration.
Jessica, age 21, promised a 1995 Ford as a gift to her friend, Michelle, age 50.
Which one of the following is the missing element that would make this gift
transaction a contract?
Select one:
A. ConsiderationCorrect. Consideration makes a promise a contract. A promise to
make a gift or to do something without receiving consideration in return is not
enforceable. It is merely a gratuitous promise.
