Consumer Law Quiz

What is a contract?

• A contract is a legally binding agreement between two or more parties.
• A contract is a verbal agreement
• A contract is a piece of paper
• A contract is a type of currency

What is a mortgage and how does it work?

• A mortgage is a loan used to purchase a home, where the borrower agrees to pay back the loan amount plus interest over time, with the home serving as collateral.

• A mortgage is a credit card used to pay for home purchases.

• A mortgage is a type of insurance for homeowners.

• A mortgage is a government grant to help people buy homes.

What is the difference between a mortgage and a lease?

• Owning vs. borrowing
• Renting vs. buying
• Loan vs. agreement
• Ownership vs. renting

What are the responsibilities of the renter?

• Walking the landlord's dog
• Painting the property without permission
• Subletting the property without notifying the landlord
• Paying rent on time, maintaining the property, following lease terms, notifying landlord of repairs

What are the different types of terms for a rental agreement?

• lifetime leases

• yearly leases

• weekly leases

• fixed-term leases, month-to-month leases, subleases

What is tenancy at will?

• A rental agreement that lasts for a specific period of time
• A rental agreement that can only be terminated by the landlord
• A rental agreement that automatically renews every month
• A rental agreement that can be terminated at any time by either the landlord or the tenant without any specific reason.

What are the elements of a contract?

• offer, acceptance, consideration, illegal capacity, legal purpose
• offer, rejection, consideration, legal capacity, legal purpose
• offer, acceptance, consideration, legal capacity, illegal purpose
• offer, acceptance, consideration, legal capacity, legal purpose

What is an unconscionable contract?

• An unconscionable contract is a contract that is easily understood by both parties.
• An unconscionable contract is a contract that benefits both parties equally.
• An unconscionable contract is a contract that is legally binding in all cases.
• An unconscionable contract is a contract that is so one-sided and unfair to one party that it is considered oppressive and unconscionable.

Can minors be held liable for a contract?

• Yes

• Maybe

• No

• Sometimes

How does the bank decide who qualifies for a loan?

• Through a random lottery system.
• By flipping a coin.
• Based on credit score, income, employment history, debt-to-income ratio, and collateral.
• Based on shoe size, favorite color, and pet's name.