Law 2 S2 Final

What must a valid contract include?

• A notary

• Written agreement

• Offer, acceptance, and consideration

• Court approval

Which of the following is an example of a tort?

• Signing a contract

• Getting married

• Causing harm due to negligence

• Missing a credit card payment

The Truth in Lending Act requires lenders to:

• Offer lower interest rates

• Use only paper contracts

• Disclose loan terms clearly

• Remove late fees

What does APR stand for?

• Average Payment Rate

• Annual Percentage Rate

• Account Payment Ratio

• Automatic Payment Rule

A cosigner is someone who:

• Writes the loan contract

• Collects the loan payments

• Guarantees loan repayment if the borrower fails

• Investigates credit scores

Which of the following actions is most likely a breach of contract?

• Refusing to pay after receiving services

• Forgetting a friend’s birthday

• Losing a receipt

• Asking for a refund

Why do contracts include consideration?

• To show the parties like each other

• To ensure there is something of value exchanged

• To allow for refunds

• To make the contract sound formal

What is a warning sign of an unfair payday loan?

• No credit check required

• Low APR

• Short repayment period and hidden fees

• Fixed monthly payment

A credit report is useful because it:

• Tracks your class attendance

• Shows your payment and borrowing history

• Offers legal advice

• Contains your medical records

What happens when someone defaults on a loan?

• They earn a reward

• They complete the loan

• They fail to meet payment terms

• They get a lower credit score