Question 1

Force majeure clauses:

Accepted Answer

A)  are liquidated damages clauses. 
B)  are void. 
C)  serve to shift the risk of unforeseen events. 
D)  none of the above 
A)  are liquidated damages clauses. 
B)  are void. 
C)  serve to shift the risk of unforeseen events. 
D)  none of the above

Question 2

The Fair Credit Reporting Act applies:

Accepted Answer

A)  only to consumer reporting agencies. 
B)  to all information on consumer debtors. 
C)  to consumer and commercial credit. 
D)  none of the above 
A)  only to consumer reporting agencies. 
B)  to all information on consumer debtors. 
C)  to consumer and commercial credit. 
D)  none of the above

Question 3

Chapter 11 bankruptcy is available to consumers with debts.

Accepted Answer

A) True 
 B)False

Question 4

Parents of minors can be held liable for the reasonable value of necessaries that their minor children contracted for.

Accepted Answer

A) True 
 B)False

Question 5

Undue influence requires the presence of:

Accepted Answer

A)  a fiduciary relationship. 
B)  some threat or force. 
C)  a lack of capacity in the contracting party. 
D)  none of the above 
A)  a fiduciary relationship. 
B)  some threat or force. 
C)  a lack of capacity in the contracting party. 
D)  none of the above

Question 6

The three-day-cooling-off period applies to all credit transactions.

Accepted Answer

A) True 
 B)False

Question 7

There is no difference between assignments and delegation.

Accepted Answer

A) True 
 B)False

Question 8

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. Suppose that the listing agent was aware of the home's history and the drug dealer's arrest and conviction. The agent told the neighbors to cooperate by not disclosing any information to Dana. "Look," the agent told them, "you can get the house sold and keep your values up or let it sit there and have the old druggies come by and destroy it." Which of the following statements is true?

Accepted Answer

A)  The real estate agent has committed fraud. 
B)  The real estate agent is under no obligation to disclose the information. 
C)  The most the real estate agent has committed is misrepresentation. 
D)  none of the above 
A)  The real estate agent has committed fraud. 
B)  The real estate agent is under no obligation to disclose the information. 
C)  The most the real estate agent has committed is misrepresentation. 
D)  none of the above

Question 9

Under the Fair Credit Reporting Act, consumers have which of the following rights?

Accepted Answer

A)  privacy and no disclosure without permission 
B)  right to dispute information in the report 
C)  right to correction 
D)  right to rebuttal statement 
E)  consumers have all of the above rights 
A)  privacy and no disclosure without permission 
B)  right to dispute information in the report 
C)  right to correction 
D)  right to rebuttal statement 
E)  consumers have all of the above rights

Question 10

Puffing is sufficient grounds for setting aside a contract on the basis of misrepresentation.

Accepted Answer

A) True 
 B)False

Question 11

A provision in a contract requiring that a buyer obtain financing before a deal can go through is an example of:

Accepted Answer

A)  a contract with no consideration. 
B)  economic duress. 
C)  a condition precedent. 
D)  none of the above 
A)  a contract with no consideration. 
B)  economic duress. 
C)  a condition precedent. 
D)  none of the above

Question 12

Which of the following is true about a line of credit secured by the equity in the debtor's home?

Accepted Answer

A)  there is a three-day rescission period 
B)  the same levels of disclosure for other types of credit are not required 
C)  the monthly payments need not be disclosed 
D)  All of the above are true. 
A)  there is a three-day rescission period 
B)  the same levels of disclosure for other types of credit are not required 
C)  the monthly payments need not be disclosed 
D)  All of the above are true.

Question 13

A television rent-to-own contract that requires 24 payments of $30 each before the renter owns the $199 television set is unconscionable.

Accepted Answer

A) True 
 B)False

Question 14

Paula Sanford has filed a voluntary petition in bankruptcy. Paula has a job but admits that she is in over her head on credit card debt. The bankruptcy court:

Accepted Answer

A)  can allow Paula to declare bankruptcy because she has debts. 
B)  can allow Paula to declare bankruptcy but Paula may have to go into a Chapter 13 debt adjustment plan. 
C)  has no remedies for consumers with only credit card debt. 
D)  none of the above 
A)  can allow Paula to declare bankruptcy because she has debts. 
B)  can allow Paula to declare bankruptcy but Paula may have to go into a Chapter 13 debt adjustment plan. 
C)  has no remedies for consumers with only credit card debt. 
D)  none of the above

Question 15

Which of the following contracts would be void?

Accepted Answer

A)  A contract with a person declared mentally incompetent. 
B)  A contract with a minor. 
C)  A contract with a force majeure clause. 
D)  All of the above are void. 
A)  A contract with a person declared mentally incompetent. 
B)  A contract with a minor. 
C)  A contract with a force majeure clause. 
D)  All of the above are void.

Question 16

There are no limitations on credit-agency disclosures, if the debtor is applying for a loan of more than $50,000.

Accepted Answer

A) True 
 B)False

Question 17

The Hoffmans were having their home remodeled by All-Right Contractors. The roof had to be removed in order to build the second story the Hoffmans had contracted and designed to build. After All-Right had removed the roof, but before a covering was placed over the exposed half of the home, All-Right's foreman said the job would cost an additional $12,500. The Hoffmans refused to agree to the additional fees and All-Right's foreman said, "Suit yourselves. Looks like rain for the next day or two," and left. The Hoffmans called All-Right and agreed to pay the
$12,500 extra and went in to sign the paperwork. Which of the following statements is true?

Accepted Answer

A)  The contract for the additional $12,500 is valid and binding. 
B)  The contract for the additional $12,500 is invalid because of duress. 
C)  The contract was not valid because of duress, but the Hoffmans signed anyway - so there is a valid and enforceable agreement. 
D)  none of the above 
A)  The contract for the additional $12,500 is valid and binding. 
B)  The contract for the additional $12,500 is invalid because of duress. 
C)  The contract was not valid because of duress, but the Hoffmans signed anyway - so there is a valid and enforceable agreement. 
D)  none of the above

Question 18

The FDCPA does not apply to lawyers who are collecting bills for clients.

Accepted Answer

A) True 
 B)False

Question 19

A weight-loss ad claims, "Lose up to five pounds per week." Is this statement a basis for misrepresentation?

Accepted Answer

Yes, the statement could be a basis for

Question 20

The seller's cost of running another ad in order to sell the car that a buyer breached a contract on is an example of consequential damages.

Accepted Answer

A) True 
 B)False

Force majeure clauses:

The Fair Credit Reporting Act applies:

Chapter 11 bankruptcy is available to consumers with debts.

Parents of minors can be held liable for the reasonable value of necessaries that their minor children contracted for.

Undue influence requires the presence of:

The three-day-cooling-off period applies to all credit transactions.

There is no difference between assignments and delegation.

Under the Fair Credit Reporting Act, consumers have which of the following rights?

Puffing is sufficient grounds for setting aside a contract on the basis of misrepresentation.

A provision in a contract requiring that a buyer obtain financing before a deal can go through is an example of:

Which of the following is true about a line of credit secured by the equity in the debtor's home?

A television rent-to-own contract that requires 24 payments of $30 each before the renter owns the $199 television set is unconscionable.

Paula Sanford has filed a voluntary petition in bankruptcy. Paula has a job but admits that she is in over her head on credit card debt. The bankruptcy court:

Which of the following contracts would be void?

There are no limitations on credit-agency disclosures, if the debtor is applying for a loan of more than $50,000.

The FDCPA does not apply to lawyers who are collecting bills for clients.

A weight-loss ad claims, "Lose up to five pounds per week." Is this statement a basis for misrepresentation?

The seller's cost of running another ad in order to sell the car that a buyer breached a contract on is an example of consequential damages.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters

Exam 13: Contracts: Performance, Remedies, and Rights

Force majeure clauses:

The Fair Credit Reporting Act applies:

Chapter 11 bankruptcy is available to consumers with debts.

Parents of minors can be held liable for the reasonable value of necessaries that their minor children contracted for.

Undue influence requires the presence of:

The three-day-cooling-off period applies to all credit transactions.

There is no difference between assignments and delegation.

Under the Fair Credit Reporting Act, consumers have which of the following rights?

Puffing is sufficient grounds for setting aside a contract on the basis of misrepresentation.

A provision in a contract requiring that a buyer obtain financing before a deal can go through is an example of:

Which of the following is true about a line of credit secured by the equity in the debtor's home?

A television rent-to-own contract that requires 24 payments of $30 each before the renter owns the $199 television set is unconscionable.

Paula Sanford has filed a voluntary petition in bankruptcy. Paula has a job but admits that she is in over her head on credit card debt. The bankruptcy court:

Which of the following contracts would be void?

There are no limitations on credit-agency disclosures, if the debtor is applying for a loan of more than $50,000.

The FDCPA does not apply to lawyers who are collecting bills for clients.

A weight-loss ad claims, "Lose up to five pounds per week." Is this statement a basis for misrepresentation?

The seller's cost of running another ad in order to sell the car that a buyer breached a contract on is an example of consequential damages.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters