AIC 301 FINAL EXAM PREP QUESTIONS WITH ALL CORRECT ANSWERS
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Course
AIC 301
Institution
AIC 301
AIC 301 FINAL EXAM PREP QUESTIONS WITH ALL CORRECT ANSWERS
Which one of the following parties is the holder of the warehouse receipt in a typical storage bailment?
Select one:
A. Warehouse operator B. Carrier
C. Bailor
D. Bailee - Answer-C. Bailor
Which one of the following is an action ca...
AIC 301 FINAL EXAM PREP
QUESTIONS WITH ALL CORRECT
ANSWERS
Which one of the following parties is the holder of the warehouse receipt in a typical
storage bailment?
Select one:
A. Warehouse operator
B. Carrier
C. Bailor
D. Bailee - Answer-C. Bailor
Which one of the following is an action causing harm that would most likely result in the
application of the res ipsa loquitur doctrine?
Select one:
A. An arson fire burns a warehouse to the ground.
B. A roll of tar paper falls off a building at night and hits someone.
C. A drunk driver runs his car into a pedestrian.
D. A tornado destroys a barn. - Answer-B. A roll of tar paper falls off a building at night
and hits someone.
Sam builds single- and two-seat airplanes in his garage. He takes every care to be sure
he stores fuels safely, has fire suppression equipment in place, and minimizes any
noise associated with testing the engines. One day, an engine explodes during testing,
releasing oil and airplane fuel that flow onto his neighbor's property. Which one of the
following characteristics of ultrahazardous activities existed?
Select one:
A. It involves activities that should normally be undertaken in an industrial environment.
B. It involved a dangerous substance that was brought onto real property and escaped,
causing damage.
C. It involved aviation which, by definition, is automatically a strict liability situation.
D. The manufacturer of the airplane fuel created a product that was inherently
dangerous. - Answer-B. It involved a dangerous substance that was brought onto real
property and escaped, causing damage.
, Which one of the following correctly notes a difference between nonwaiver agreements
and reservation of rights letters?
Select one:
A. Only reservation of rights letters allow the insurer to retain the right to deny coverage
later.
B. The reservation of rights letter provides unilateral notice to the insured.
C. Reservation of rights letters are generally not enforced by the courts.
D. Only nonwaiver agreements prevent insured's subsequent claims for waiver. -
Answer-B. The reservation of rights letter provides unilateral notice to the insured.
Tanya leased a building for use as a restaurant. In the process, she purchased and
installed a removable pizza oven. At the end of the lease, Tanya's landlord told her
thepizza oven was a property alteration because it was attached to real property and
muststay with the building. In this situation the pizza oven is
Select one:
A. A property alteration.
B. An improvement or betterment.
C. A trade fixture.
D. A leasehold interest. - Answer-C. A trade fixture
While driving, Karl's foot slips off the brake and his car rolls into the back of Sunny's
vehicle. No one is hurt, but the accident caused a large dent in the back bumper of
Sunny's vehicle. For which one of the following types of damages is Sunny eligible?
Select one:
A. General damages
B. Special damages
C. Incidental damages
D. Bad-faith damages - Answer-B. Special damages
In contract cases involving breach of duty of good faith, which one of the following types
of damages might a court impose in addition to actual damages?
Select one:
A. Compensatory
B. Extracontractual
C. Consequential
D. Mitigation - Answer-B. Extracontractual. A court might impose extracontractual
damages, a payment awarded by a court that exceeds the usual contract damages for a
breach of contract involving bad faith. Mitigation of damages is a duty owed by an
injured party to a claim to take reasonable measures to minimize or avoid additional
injury or loss caused by the defendant. Consequential damages are a payment awarded
by a court to indemnify an injured party for losses that result indirectly from a wrong
such as a breach of contract or a tort. Compensatory damages are a payment awarded
by a court to indemnify a victim for actual harm.
Which one of the following contractual rights are assignable without the obligor's
consent?
Select one:
A. Damages for personal injury
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