AIC 301 QUIZ/TEST STUDY QUESTIONS AND ANSWERS

AIC 301 QUIZ/TEST STUDY QUESTIONS
AND ANSWERS



Market9Share9Liability9-9ans--
Applies9when9a9product9that9has9harmed9a9consumer9cannot9be9traced9to9a9single9man
ufacturer.9They9are9liable9unless9they9can9prove9they9could9not9have9made9the9product
9involved.


A9Defense9to9Fraud9-9ans--
The9defendant9must9make9the9representation9with9the9intent9to9influence9the9other9part
y's9action.9If9the9defendant9did9not9intend9to9deceive,9there9is9no9proof9of9fraud.

Community9Property9-9ans--
Under9the9community9property9concept9two9types9of9property9can9belong9to9a9spouse9-
9separate9property9as9well9as9community9property.9Separate9property9is9the9respective9
spouse's9sole9property9and9it9is9free9from9the9other9spouse's9interest9or9control.

Parole9Evidence9Rule9(PER)9-9ans--
The9parole9evidence9rule9provides9that9oral9evidence9of9agreements9preceding9or9acco
mpanying9a9written9insurance9policy9cannot9be9used9to9prove9a9waiver.9Thus,9the9agen
t's9oral9statements9made9at9this9time9would9not9be9admitted9into9evidence9and9thus9wo
uld9be9ineffective9as9a9waiver.

A9provision9that9prevents9the9terms9of9a9contract9from9being9modified9by9evidence9of9or
al9or9other9agreements9after9the9contract9has9been9written.

Defenses9to9Tort9Fraud9-9ans--The9statement9was9not9false
The9statement9did9not9relate9to9a9material9fact9
The9defendant9did9not9know9the9statement9was9false
The9defendant9did9not9intend9to9deceive9
The9plaintiff9did9not9rely9on9the9statements9
The9plaintiff9suffered9no9harm9or9or9loss9because9of9relying9on9the9statement

A9Constructive9Eviction9-9ans--
Actions9or9inactions9of9a9landlord9that9create9conditions9that9prevent9a9tenant9from9enjo
ying9a9substantial9or9integral9part9of9the9premise9constitute9a9constructive9eviction.

, Repudiation9of9a9Contract9-9ans--
repudiation9of9a9contract9is9the9refusal9to9meet9obligations9under9the9contract,9but9it9mu
st9be9positive9and9unequivocal9to9constitute9a9breach.9A9statement9of9inability9to9perfor
m9in9the9future9is9not9repudiation.9A9person9cannot9sue9for9breach9of9contract9until9due9
date9and9person9has9failed9to9complete9the9job.

Frustration9of9Purpose9-9ans--
A9rental9contract9is9useless9to9a9person9since9the9original9purpose9for9the9rental9was9fr
ustrated9because9the9celebrity9was9not9there.9Frustration9of9purpose9can9discharge9a9c
ontract9that9is9possible9to9perform,9when9a9supervening9event9destroys9the9propose9or9
value9of9the9contract,9provided9that9both9parties9are9aware9of9that9purpose9or9value.

Direct9Action9Statutes




Garnishment9-9ans--
Third9parties9are9generally9not9allowed9to9sue9insurers9of9negligent9parties9who9injure9t
hem9or9damage9their9property.9Some9states9have9enacted9direct9action9statutes9permitt
ing9third9party9sue9insurer9directly9or9both9insurer9and9insured/wrongdoer/
tortfeasor9directly9

If9insured9denies9claim9payments9after9judgement,9some9states9allow9third9party9to9sue9
the9insurer9directly9in9a9statutory9action9called9garnishment.

Consequential9Damages9-9ans--
The9loss9of9the9entry9fee9money9is9an9example9of9consequential9damages.9Consequent
ial9damages9are9awarded9by9court9to9indemnify9injured9parties9for9losses9that9result9ind
irectly9from9a9wrong,9such9as9a9breach9of9contract9as9in9this9situation.

Enterprise/Industry-Wide9Liability

Alternative9Liability9



Market9Share9Liability9




Concert9of9Action9


Conspiracy9-9ans--Each9producer9held9liable9based9on9its9market9share