Exam 12: Contracts and Sales: Performance,Remedies,and Collection

List the federal laws regulating credit contracts and give a brief description of each.

There is a three-day rescission period on home equity loans.

Clothing For Accountants is a popular retail store owned by I.M.Material.Material has just sold the business to Phil Forma.Phil has asked that a covenant not to compete be inserted into the agreement.Such covenants are:

An example of a condition precedent in a home purchase contract is that the buyer must qualify for financing first.

The Fair Credit Reporting Act regulates creditors.

The court in the case involvingthe ACT exam (Durrett)held that:

The maximum wage garnishment for general debts is 50 percent.

The FDCPA places time limits for the placement of calls.

Competency licensing statutes do not prevent enforcement of contracts by unlicensed parties.

Dana Riley purchased a home in the Brentwood area of Los Angeles.After she purchased the home,she learned that the home had been the residence of a long-time drug dealer.She experienced many late-night visitors and often noticed cars parked outside near the street curb with the drivers and passengers studying the home.The former owner has been convicted of drug charges.Dana has become uncomfortable with the visitors and the surveillance.She just wants out of the house.Which of the following statements is true?

Goods can be transferred physically or by transfer of the bill of lading.

Which of the following contracts would be void?

A force majeure clause is one that provides excuses for nonperformance.

James Krieg has finished law school but has unsuccessfully taken the bar exam twice.Krieg is running low on patience and cash.He has begun writing wills to see him through this time of crisis and is charging $200 per will.Some of his will clients have refused to pay Krieg and he wishes to take them to a small claims court.Which of the following statements is true?

Which of the following would $\underline{\text{not}}$ be a basis for misrepresentation?

The Consumer Credit Protection Act puts limitations on garnishments.

A letter of credit:​

Bob,age 17,has entered into a contract to buy a car.The contract is:

The FCRA permits the disclosure of an embezzlement for which probation was completed ten years ago.

Laura Walsh owed $560 to a local department store.The debt was assigned to a collection agency.The agency did the following: (a)used a postcard to contact Laura and summarize her debt,(b)called her at 7 AM to catch her before she left for work,(c)called her in spite of Laura's requests to stop,(d)contacted her employer about the debt,(e)contacted her at the hospital as she visited her ill mother.Are any of the actions improper?