CPCU 530 || All Solved.
Civil Law correct answers Comprehensive codes of written laws or statutes that apply to all legal
questions. These systems rely on scholarly interpretations of their codes and constitutions rather
than on court decisions
Common Law correct answers Body of law derived from court decisions as opposed to statutes
or constitutions.
Doctrine of Stare Decisis correct answers Principle that lower courts must follow precedents set
by higher courts
Substantive Law correct answers Classification of law that creates, defines, and regulates parties'
rights, duties, and powers. It governs the merits of the case, which are based on the facts giving
rise to the lawsuit.
Procedural Law correct answers Classification of law that prescribes the steps, or processes, for
enforcing the rights and duties defined by the substantive law. It involves the procedures or
mechanics of court processes and the methods used to enforce substantive law.
Executive Branch correct answers Led by president on federal level and governors on state level;
Has power to recommend, approve, or veto laws and to administer and carry out many laws
through administrative agencies. Its checks on the other two branches include the power to
appoint judges and the power to veto laws passed by the legislative branch.
Legislative Branch correct answers Federal congress and state legislatures; has power to pass
laws. Branch's check on the other two branches include its power to approve or deny many
executive's appointments, and its ability to pass constitutional laws negating judicial opinions.
Judicial Branch correct answers The courts; interpret, affirm, or negate laws. Checks on the other
two branches include the power to declare laws, and sometimes actions or regulations of the
executive branch unconstitutional or unlawful
,Writ of certiorari correct answers An appellate courts order directing a lower court to deliver its
record in a case for appellate review
Rules of evidence correct answers It must be relevant, material, and competent
Administrative agencies have two main functions correct answers Rulemaking and adjudication
Admin. Agencies three types of rules correct answers Legislative, interpretative, and procedural
Valid assignment correct answers Requires neither formality nor writing, Any words or actions
that indicate the assignor's intention to transfer contractual rights effects a valid assignment
Contract must have 4 elements correct answers Agreement, capacity to contract, consideration,
and legal purpose
Executed contract correct answers Contract that has been completely performed by both parties
Executory contract correct answers A contract that has not been completely performed by one or
both of the parties
Implied contract correct answers A contract whose terms and intentions are indicated by the
actions of the parties to the contract and the surrounding circumstances
Express contract correct answers A contract whose terms and intentions are explicitly stated
Implied-In-Fact Contract correct answers A contract that is not express but that the parties
presumably intended, either by tacit understanding or by the assumption that it existed.
,Implied-in-law contract correct answers An obligation that is not an actual contract but that is
imposed by law because of the parties' conduct or some special relationship between them or
because one of them would otherwise be unjustly enriched
Voidable contract correct answers A contract that one of the parties can reject (avoid) based on
some circumstance surrounding its execution
An apparently valid contract may be unenforceable if either party has not given genuine assent to
contract. GA may be lacking if a party was induced to enter a contract by any of the following
correct answers 1) Fraud
2) Mistake - Unilateral mistake - perception by one party to a contract that does not agree with
the facts / Bilateral mistake - A perception by both parties to a contract that does not agree with
the facts
3) Duress - The use of restraint, violence, or threats of violence to compel a party to act contrary
to his or her wishes or interests
4) Undue Influence - The improper use of power or trust to deprive a person of free will and
substitute another's objective, resulting in lack of genuine assent to a contract
5) Innocent Misrepresentation
6 Elements of Fraud: correct answers 1. A false representation
2. Of a material fact
3. Knowingly made
4. With intent to deceive
5. On which the other party has placed justifiable reliance
6. To his/her detriment
For contract purposes, an offer is valid if it includes: correct answers 1. An intent to contract
2. Definite Terms
3. Communication to the other party
, Unilateral Contract correct answers contract in which only one party makes a promise or
undertakes the requested performance
Bilateral Contract correct answers Contract in which each party promises a performance
Elements of Acceptance correct answers Acceptance by the offeree, unconditional and
unequivocal, offeree's communication of acceptance to offeror by appropriate word or act
Consideration correct answers Something of value or bargained for and exchanged by the parties
to a contract
Consideration necessary to make a promise enforceable can be one of the following correct
answers A return promise, An act performed, or A forbearance from acting
Types of Consideration: correct answers 1. Valuable Consideration
2. Forbearance
3. Present Consideration
4. Future Consideration
5. Binding Promises
Nonperformance correct answers Right the insurer has against the insured when a material
breach occurs
Rights not assignable: correct answers 1. Assignment of veterans' disability benefits, government
pensions, wages, inheritances, and WC benefits
2. Personal rights
3. When an assignment materially alters or varies the obligor's performance
4. When a judgment is pending in a personal injury case, generally the injured person cannot
assign a claim for damages resulting from the injury
Civil Law correct answers Comprehensive codes of written laws or statutes that apply to all legal
questions. These systems rely on scholarly interpretations of their codes and constitutions rather
than on court decisions
Common Law correct answers Body of law derived from court decisions as opposed to statutes
or constitutions.
Doctrine of Stare Decisis correct answers Principle that lower courts must follow precedents set
by higher courts
Substantive Law correct answers Classification of law that creates, defines, and regulates parties'
rights, duties, and powers. It governs the merits of the case, which are based on the facts giving
rise to the lawsuit.
Procedural Law correct answers Classification of law that prescribes the steps, or processes, for
enforcing the rights and duties defined by the substantive law. It involves the procedures or
mechanics of court processes and the methods used to enforce substantive law.
Executive Branch correct answers Led by president on federal level and governors on state level;
Has power to recommend, approve, or veto laws and to administer and carry out many laws
through administrative agencies. Its checks on the other two branches include the power to
appoint judges and the power to veto laws passed by the legislative branch.
Legislative Branch correct answers Federal congress and state legislatures; has power to pass
laws. Branch's check on the other two branches include its power to approve or deny many
executive's appointments, and its ability to pass constitutional laws negating judicial opinions.
Judicial Branch correct answers The courts; interpret, affirm, or negate laws. Checks on the other
two branches include the power to declare laws, and sometimes actions or regulations of the
executive branch unconstitutional or unlawful
,Writ of certiorari correct answers An appellate courts order directing a lower court to deliver its
record in a case for appellate review
Rules of evidence correct answers It must be relevant, material, and competent
Administrative agencies have two main functions correct answers Rulemaking and adjudication
Admin. Agencies three types of rules correct answers Legislative, interpretative, and procedural
Valid assignment correct answers Requires neither formality nor writing, Any words or actions
that indicate the assignor's intention to transfer contractual rights effects a valid assignment
Contract must have 4 elements correct answers Agreement, capacity to contract, consideration,
and legal purpose
Executed contract correct answers Contract that has been completely performed by both parties
Executory contract correct answers A contract that has not been completely performed by one or
both of the parties
Implied contract correct answers A contract whose terms and intentions are indicated by the
actions of the parties to the contract and the surrounding circumstances
Express contract correct answers A contract whose terms and intentions are explicitly stated
Implied-In-Fact Contract correct answers A contract that is not express but that the parties
presumably intended, either by tacit understanding or by the assumption that it existed.
,Implied-in-law contract correct answers An obligation that is not an actual contract but that is
imposed by law because of the parties' conduct or some special relationship between them or
because one of them would otherwise be unjustly enriched
Voidable contract correct answers A contract that one of the parties can reject (avoid) based on
some circumstance surrounding its execution
An apparently valid contract may be unenforceable if either party has not given genuine assent to
contract. GA may be lacking if a party was induced to enter a contract by any of the following
correct answers 1) Fraud
2) Mistake - Unilateral mistake - perception by one party to a contract that does not agree with
the facts / Bilateral mistake - A perception by both parties to a contract that does not agree with
the facts
3) Duress - The use of restraint, violence, or threats of violence to compel a party to act contrary
to his or her wishes or interests
4) Undue Influence - The improper use of power or trust to deprive a person of free will and
substitute another's objective, resulting in lack of genuine assent to a contract
5) Innocent Misrepresentation
6 Elements of Fraud: correct answers 1. A false representation
2. Of a material fact
3. Knowingly made
4. With intent to deceive
5. On which the other party has placed justifiable reliance
6. To his/her detriment
For contract purposes, an offer is valid if it includes: correct answers 1. An intent to contract
2. Definite Terms
3. Communication to the other party
, Unilateral Contract correct answers contract in which only one party makes a promise or
undertakes the requested performance
Bilateral Contract correct answers Contract in which each party promises a performance
Elements of Acceptance correct answers Acceptance by the offeree, unconditional and
unequivocal, offeree's communication of acceptance to offeror by appropriate word or act
Consideration correct answers Something of value or bargained for and exchanged by the parties
to a contract
Consideration necessary to make a promise enforceable can be one of the following correct
answers A return promise, An act performed, or A forbearance from acting
Types of Consideration: correct answers 1. Valuable Consideration
2. Forbearance
3. Present Consideration
4. Future Consideration
5. Binding Promises
Nonperformance correct answers Right the insurer has against the insured when a material
breach occurs
Rights not assignable: correct answers 1. Assignment of veterans' disability benefits, government
pensions, wages, inheritances, and WC benefits
2. Personal rights
3. When an assignment materially alters or varies the obligor's performance
4. When a judgment is pending in a personal injury case, generally the injured person cannot
assign a claim for damages resulting from the injury
