Business/Consumer Protection Laws

Question 1

Contract Elements

Answer 1

Agreement preceded by an offer

Consideration

Must have legal capacity to execute contracts

Must be lawful purpose

Question 2

Agent

Answer 2

Loyal to employer/insurance company

Question 3

Broker

Answer 3

Loyal to client

Question 4

Agency/Authority Types

Answer 4

Express - written

Implied - public belief

Apparent - negligence of principal

Question 5

Bankruptcy Types

Answer 5

Ch 11: exceed debt limit of 13 or have no income

Ch 13: reorganization, creditors cannot harass, generally not required to give up assets

Ch 7: claim federal or state exemptions = homestead, retirement plans, wages due to Head of Household, Cash Value of Life Insurance and proceeds of annuities, Disability/unemployment/worker’s comp, property held in tenancy by entirety

Cannot generally cancel: student or government loans, Taxes and FICA, Child support and Alimony