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AIC 301 - final exam prep questions and answers
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AIC 301 - final exam prep questions and answers
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AIC301
-
final
exam
prep
questions
The
act
of
leaving
a
dangerous
article
such
as
a
gun
or
car
with
a
person
who
the
lender
knows,
or
should
know,
is
likely
to
use
it
in
an
unreasonably
risky
manner
is
known
as
Select
one:
A.
Negligent
entrustment.
B.
Contributory
negligence.
C.
Negligent
supervision.
D.
The
dangerous
instrumentality
doctrine.
-
ANSWER-A.
Negligent
entrustment.
There
was
a
large
unmarked
sinkhole
on
Charlotte's
property,
a
short
distance
from
a
public
road.
One
evening,
a
police
officer
chased
a
mugger
off
the
road
and
onto
Charlotte's
property.
Both
the
officer
and
the
mugger
fell
into
the
hole
and
were
injured.
Which
one
of
the
following
best
answers
whether
Charlotte
is
liable
for
the
injuries
to
the
police
officer
and/or
to
the
mugger?
Select
one:
A.
Charlotte
is
not
liable
to
either
the
officer
or
the
mugger,
because
occupiers
of
land
have
no
duty
to
correct
defects
abutting
sidewalks
or
streets.
B.
Charlotte
is
liable
to
both
the
officer
and
the
mugger,
because
she
had
a
duty
to
avoid
endangering
travelers
with
an
unguarded
ditch.
C.
Charlotte
is
not
liable
to
the
officer
or
the
mugger,
because
they
were
both
trespassers
on
her
property.
D.
Charlotte
is
liable
to
the
officer
for
the
unguarded
ditch,
because
the
officer
was
a
licensee,
but
she
is
not
liable
to
the
tres
-
ANSWER-D.
Charlotte
is
liable
to
the
officer
for
the
unguarded
ditch,
because
the
officer
was
a
licensee,
but
she
is
not
liable
to
the
trespassing
mugger.
Antonia
was
a
life
tenant
who
occupied
a
house
at
33
Main
Street.
Emil
had
a
remainder
interest
in
the
property
and
planned
to
occupy
it
after
Antonia's
death.
Antonia
obtained
property
insurance
covering
the
house,
through
Richley
Insurance
Co.
The
house
was
destroyed
by
fire
during
Antonia's
life
estate.
Richley
must
pay
the
insurance
policy
proceeds
to
Select
one: A.
Emil,
under
the
doctrine
of
equitable
conversion.
B.
Antonia,
since
she
occupied
the
house
at
the
time
of
the
fire.
C.
Antonia,
because
life
tenants
can
recover
the
entire
value
of
the
property
that
they
insure.
D.
Emil,
because
he
will
ultimately
own
the
property.
-
ANSWER-C.
Antonia,
because
life
tenants
can
recover
the
entire
value
of
the
property
that
they
insure.
Cristobal
is
in
the
process
of
purchasing
a
home
from
Leah.
They
are
in
the
executory
period.
This
means
that
Select
one:
A.
Cristobal
and
Leah
have
signed
the
real
estate
sales
contract,
but
have
not
yet
closed.
B.
Cristobal
has
made
an
offer
and
Leah
has
accepted
verbally.
C.
Cristobal
and
Leah
have
signed
the
real
estate
sales
contract
and
have
gone
to
closing.
D.
Cristobal
has
made
a
verbal
offer,
which
Leah
is
considering.
-
ANSWER-A.
Cristobal
and
Leah
have
signed
the
real
estate
sales
contract,
but
have
not
yet
closed.
Kirk
contracts
with
Ernest
for
five
shipments
of
fresh
produce
at
a
specific
price
per
shipment
due
at
the
time
of
delivery.
Kirk
fails
to
ship
the
third
shipment.
The
contract
between
Kirk
and
Ernest
is
Select
one:
A.
Void.
B.
Unilateral.
C.
Divisible.
D.
Entire.
-
ANSWER-C.
Divisible.
A
contract
is
divisible
if
each
party's
performance
can
be
divided
into
two
or
more
parts
and
if
it
appears
that
the
parties
to
the
contract
contemplated
separate
compensation
for
each
installment
of
the
performance.
Failure
to
perform
one
installment
is
not
failure
to
perform
the
entire
agreement.
If
the
contract
is
divided
into
parts
only
to
provide
periodic
payments
toward
the
full
amount
due
upon
contract
completion,
the
contract
is
an
entire
contract,
not
a
divisible
one.
When
possible,
courts
prefer
to
interpret
contracts
as
divisible
to
avoid
hardships
that
can
result
from
delaying
payments
under
the
contract
until
full
performance
has
been
completed. Fatima
owns
a
cafe
that
is
open
to
the
public.
Kaito
enters
the
cafe
and
orders
a
coffee.
Kaito
is
a(n)
Select
one:
A.
Public
invitee.
B.
Business
invitee.
C.
Express
licensee.
D.
Trespasser.
-
ANSWER-B.
Business
invitee.
James
wants
to
pursue
a
legal
claim
against
his
neighbor,
but
he
does
not
know
what
kind
of
dispute
resolution
procedure
is
the
best
choice
for
his
situation.
The
dispute
is
over
a
relatively
small
amount
of
money,
so
James
does
not
want
to
spend
a
lot
in
pursuit
of
his
claim.
James
wants
to
be
able
to
present
his
side
of
the
story
and
his
witnesses
before
a
neutral
third
party.
James
would
be
pleased
if
he
and
his
neighbor
could
reach
a
compromise,
but,
ideally,
James
wants
to
be
able
to
walk
away
with
a
binding
decision.
Assuming
that
James'
neighbor
will
agree
to
participate
in
whatever
procedure
James
suggests,
which
one
of
the
following
dispute
resolution
procedures
is
the
best
choice
for
James?
Select
one:
A.
Mediation
B.
Negotiation
C.
Arbitration
D.
Litigation
-
ANSWER-C.
Arbitration
Chloe
is
investigating
Thomas'
claim
for
damage
to
his
automobile.
Thomas
is
not
cooperating
with
Chloe's
attempts
to
schedule
an
adjuster
to
inspect
the
vehicle.
Chloe
should
Select
one:
A.
Issue
a
unilateral
waiver
of
rights
letter.
B.
Issue
a
unilateral
reservation
of
rights
letter.
C.
Issue
denial
for
failure
to
cooperate.
D.
Ask
Thomas
to
sign
a
reservation
of
rights
letter.
-
ANSWER-B.
Issue
a
unilateral
reservation
of
rights
letter.
Cathy
left
a
bracelet
at
a
jeweler
for
repair
and
was
given
a
receipt
with
the
statement,
"This
establishment
is
not
responsible
for
loss
or
damage
to
any
item
left
in
its
possession."
Which
one
of
the
following
does
the
statement
on
the
receipt
represent?
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