CPCU 530 Study Guide 2024 Actual Questions With Correct Detailed Answers.

6 elements of a contract - correct answer Agreement (offer + acceptance), capacity to contract, assent, consideration, legal purpose, made in the form required by law Required elements of offer - correct answer Intent to contract, definite terms, communication to offeree Required elements of acceptance - correct answer acceptance by the offeree, unconditional & unequivocal, communication of acceptance. No Assent - correct answer Bullied or tricked into the contract, or terms not matching what was originally agreed upon. Executed contract - correct answer A Finished Contract Executory Contract - correct answer an agreement in which one or more parties has not yet fulfilled its obligations (An Example, an Insurance Policy or reservation for future date) implied-in-fact contract - correct answer a contract in which agreement between parties has been inferred from their conduct. Courts will look to past patterns. Void Contract - correct answer A contract having no legal force or binding effect. Usually due to legality issues - example to commit a crime Voidable Contract - correct answer A contract that may be legally avoided at the option of one or both of the parties. The most common reason is one party breached the contract. The innocent party can avoid it. Uniform Commercial Code - correct answer A collection of laws that governs various types of business transactions. Types of sales warranties - correct answer express and implied warranty (reasonable expectations) bailor - correct answer The owner of the personal property in a bailment. bailee - correct answer A person who receives personal property from another as a bailment. Bill of lading - correct answer a legal contract that defines responsibility for goods while they are in transit. Identifies the sender (consignor) and the recipient (consignee) and shipping company (carrier) Federal Trade Commission Act (1914) - correct answer FTCA provides broader coverage than antitrust laws. Can extend to acts with no relation to competition. Established the Federal Trade Commission to monitor business practices, false advertising, and dishonest labeling Magnuson-Moss Warranty Act - correct answer A federal statute that regulates written warranties on consumer products. Chapter 7 Bankruptcy - correct answer The forfeiture of an individual's assets in exchange for the discharge of debts. Chapter 11 Bankruptcy - correct answer Work with court to set up repayment plan to creditors Chapter 13 Bankruptcy - correct answer Like Chapter 11, for small businesses & individual wage earners Employement Practices Liability Coverage - correct answer Covers losses from employer violating employee rights - wrongful termination, discriminations, ect. Employment at will - correct answer An employer can fire an employee at any time, for any reason. Exceptions - violates public policy (ex. let go for medical leave), express terms or implied terms, covenant of good faith (anything that isn't fair), and statutory laws or rules Age Descrimination in Employment Act - correct answer Federal legislation that requires employer to treat applicants and employees equally regardless of age. Bona Fide Occupational Qualification (BFOQ) - correct answer a necessary (not merely preferred) qualification for performing a job. Example (airline pilots or models). Older Workers Benefit Protection Act (OWBPA) - correct answer U.S. act that amended the Age Discrimination in Employment Act to include all employee benefits; also provided standards that an employee's waiver of the right to sue for age discrimination must meet in order to be upheld by a court. Rehabilitation Act of 1973 - correct answer Extended protection to those with physical or mental handicaps Americans with Disabilities Act - correct answer Passed by Congress in 1991, this act banned discrimination against the disabled in employment and mandated easy access to all public and commerical buildings. Make reasonable accommodations. Civil Rights Act of 1964 - correct answer outlawed discrimination based on race, color, religion, sex, or national origin Title 7 - correct answer prohibits employment discrimination based on race, color, religion, sex, or national origin Equal Pay Act - correct answer 1963 law that required both men and women to receive equal pay for equal work Immigration Reform and Control Act of 1986 - correct answer Federal law requiring employers to verify and maintain records on applicants' legal rights to work in the United States Vietnam Era Veteran's Readjustment Act of 1974 - correct answer requires federal contractors and subcontractors to take affirmative action toward employing veterans of the Vietnam War Jury Systems Improvement Act of 1978 - correct answer a federal law recognizing that participation on a jury in federal court is a protected individuals right Consumer Credit Protection Act - correct answer Act that limits the amount of wages that can be garnished or withheld in any one week by an employer to satisfy creditors. Fair Labor Standards Act - correct answer 1938 act which provided for a minimum wage and restricted shipments of goods produced with child labor. Overtime pay