Free Printable Consumer Law Quiz

Worksheets

Consumer Law Quiz

Total questions: 20

Worksheet time: 10mins

Name

Class

Date

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

Sometimes

10.

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.

11.

Can minors qualify for a credit card?

Rarely

Maybe

Yes

12.

How can the bank decide who qualifies for a credit card?

Ask for a letter of recommendation from a friend

Choose applicants based on their favorite color

Randomly select individuals without any criteria

Assess credit score, income, employment status, and debt-to-income ratio.

13.

Which answer best describes loan sharking?

Borrowing money from a bank at a low interest rate

Investing in a high-risk stock market

Donating money to a charity organization

Lending money at extremely high interest rates with threats of violence for non-payment.

14.

A legal contract between the tenant and the landlord, specifying the responsibilities and rights of both parties.

lease

paper

signing your life away

loose

15.

A person who rents a property is called a?

landlord

rentee

tenant

lease

16.

What is an example of an acceleration clause?

Provision in a loan agreement allowing borrower to demand immediate repayment

Provision in a loan agreement allowing lender to demand immediate repayment

Clause in a lease agreement allowing tenant to extend the lease term

Stipulation in a contract allowing parties to renegotiate terms

17.

Contracts are the agreements between two or more parties that create obligations.

True

False

18.

Give an example of bill consolidation

Consolidating credit card debt into a personal loan with a lower interest rate.

Ignoring bills and hoping they go away

Taking out a payday loan to pay off bills

Transferring debt to a new credit card with a higher interest rate

19.

What is a balloon payment?

A balloon payment is a payment made to purchase a balloon.

A balloon payment is a type of payment made with a credit card.

A balloon payment is a small, monthly installment made at the beginning of a loan term.

A balloon payment is a large, lump sum payment made at the end of a long-term loan.

20.

What is the major difference between creditors and debtors?

Creditors lend money, while debtors borrow money.

Creditors are individuals, while debtors are companies.

Creditors have no financial obligations, while debtors have multiple debts.

The major difference between creditors and debtors is that creditors are owed money, while debtors owe money.

100 %

Consumer Law Quiz

Total questions: 20

Worksheet time: 10mins

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