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Cpcu 530 Study Questions And Answers With Verified Solutions Rated A+
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Cpcu 530 Study Questions And Answers With Verified Solutions Rated A+
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Cpcu 530 Study Questions And AnswersWith Verified Solutions Rated A+
Which one of the following best explains how a successful litigant enforces an
arbitration award?
Select one:
A. The winning party can take the arbitrator's award directly to a sheriff to
mandate compliance with the decision.
B. An arbitrator cannot award money, but the decision can be used as persuasive
evidence in a real court.
C. An arbitrator's award is filed with the appropriate court and is as enforceable
as any court judgment.
D. The parties participating in the arbitration agree in a contract to comply with
the arbitrator's decision. - ANSWER✔✔ C. An arbitrator's award is filed with the
appropriate court and is as enforceable as any court judgment.
Jessica operates her architectural business out of her home. She obtains her
business and personal insurance through Glaston Insurance Agency (GIA). Daniel,
the agent at GIA, neglected to tell Jessica that professional liability coverage was
excluded when she purchased the coverage for her business. When the deck on
her house collapses, Lily files a suit against Jessica's architectural business. It is
soon discovered that Jessica's coverage from GIA does not include professional
liability coverage, and that Jessica does not have adequate funds to compensate
Lily. Lily decides to file a suit against Daniel. Which one of the following
statements is correct regarding Lily's right to sue Daniel?
Select one:
A. Because the circumstances involve professional liability exposures, most courts
will interpret that Lily, as a third party, has the right to sue Daniel.
,B. Lily, as a third party, has the right to sue Daniel for hi - ANSWER✔✔ C. Lily was
not a party to the Daniel and Jessica's producer-customer relationship, and
therefore has no rights under the contract.
The Jet Hotel had an old, dangerous boiler in the basement that was rarely used.
The Occupational Health and Safety Administration (OSHA) had no safety
standards for this particular boiler, but did have standards for similar pieces of
equipment. The Jet Hotel's management took no steps to make the boiler safe.
One day, the boiler exploded. No one was seriously hurt, but nine employees
were treated with first aid. The management did not record these injuries or
report the accident to OSHA. Which one of the following OSHA requirements or
standards has the management violated?
Select one:
A. The general duty clause
B. The reporting requirement
C. The recordkeeping requirement
D. The specific safety standard for boilers - ANSWER✔✔ A. The general duty
clause
Which one of the following is a necessary element for a document to be
considered a title under Uniform Commercial Code (UCC) Article 7?
Select one:
A. The document gives the holder the right to receive, hold, and dispose of both
the goods and the document of title itself.
B. The document is a contract to ship, store, or dispose of goods.
C. The document is negotiable.
,D. The document is created by the bailee as a receipt for goods received. -
ANSWER✔✔ D. The document is created by the bailee as a receipt for goods
received.
Justine contracted to create Charlotte's wedding gown by next June. Later, Justine
and Charlotte agreed that Tammy would make the gown, and Charlotte expressly
released Justine from the original contract. Which one of the following
statements is true?
Select one:
A. There was a discharge by performance.
B. There was a personal satisfaction contract.
C. There was an agreement to rescind.
D. There was substantial performance of a contract. - ANSWER✔✔ C. There was
an agreement to rescind.
Ralph is the director of a fraternal organization that is a not-for-profit association.
Ralph volunteers his time to manage the organization, and he is not paid a salary
nor does he receive any type of non-monetary compensation. Which one of the
following statements regarding Ralph's role as director of the fraternal association
is true?
Select one:
A. Since Ralph receives no compensation, his standard of care owed to the
association is less than that of a compensated corporate director.
B. Ralph, as a member of the fraternal association, has no property rights in the
association's assets.
C. As an association director, Ralph has legal rights and duties that differ from
those of a corporate director.
, D. Ralph cannot be sued by a member of the association but the fraternal
association itself may be sued by a member who has suffered damage. -
ANSWER✔✔ A. Since Ralph receives no compensation, his standard of care owed
to the association is less than that of a compensated corporate director.
To perfect a security interest in a negotiable instrument, one should
Select one:
A. Take actual possession of the instrument.
B. Create a document of constructive notice.
C. Negotiate a termination statement with the debtor.
D. File a finance statement in the proper county office. - ANSWER✔✔ A. Take
actual possession of the instrument.
Transferring actual possession is the only way to perfect a security interest in a
negotiable instrument, such as a bearer bond, because delivery transfers
ownership
In bailments for mutual benefit, the bailee can use the property
Select one:
A. Only as specified within the bailment agreement or contract.
B. In any way that has reasonably been contemplated by the bailor.
C. In any way that is necessary to accomplish the mutual goal, as long as the
bailee uses reasonable care.
D. Only to the extent necessary to preserve and protect it. - ANSWER✔✔ A. Only
as specified within the bailment agreement or contract.
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