AIC 301 - final exam prep ques ons and
answers|Updated RATED A+ 2026
The act of leaving a dangerous ar cle 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.
A. Negligent entrustment.
There was a large unmarked sinkhole on Charlo#e's property, a short distance from a public
road. One evening, a police officer chased a mugger off the road and onto Charlo#e's property.
Both the officer and the mugger fell into the hole and were injured. Which one of the following
best answers whether Charlo#e is liable for the injuries to the police officer and/or to the
mugger?
Select one:
A. Charlo#e is not liable to either the officer or the mugger, because occupiers of land have no
duty to correct defects abu,ng sidewalks or streets.
B. Charlo#e is liable to both the officer and the mugger, because she had a duty to avoid
endangering travelers with an unguarded ditch.
C. Charlo#e is not liable to the officer or the mugger, because they were both trespassers on her
property.
D. Charlo#e is liable to the officer for the unguarded ditch, because the officer was a licensee,
but she is not liable to the trespassing mugger.
D. Charlo#e 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 a0er 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 me of the fire.
, C. Antonia, because life tenants can recover the en re value of the property that they insure.
D. Emil, because he will ul mately own the property.
C. Antonia, because life tenants can recover the en re 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.
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 me 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. En re.
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 par es to the contract contemplated separate compensa on for
each installment of the performance. Failure to perform one installment is not failure to
perform the en re agreement. If the contract is divided into parts only to provide periodic
payments toward the full amount due upon contract comple on, the contract is an en re
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 un l full
performance has been completed.
Fa ma 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.
B. Business invitee.
answers|Updated RATED A+ 2026
The act of leaving a dangerous ar cle 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.
A. Negligent entrustment.
There was a large unmarked sinkhole on Charlo#e's property, a short distance from a public
road. One evening, a police officer chased a mugger off the road and onto Charlo#e's property.
Both the officer and the mugger fell into the hole and were injured. Which one of the following
best answers whether Charlo#e is liable for the injuries to the police officer and/or to the
mugger?
Select one:
A. Charlo#e is not liable to either the officer or the mugger, because occupiers of land have no
duty to correct defects abu,ng sidewalks or streets.
B. Charlo#e is liable to both the officer and the mugger, because she had a duty to avoid
endangering travelers with an unguarded ditch.
C. Charlo#e is not liable to the officer or the mugger, because they were both trespassers on her
property.
D. Charlo#e is liable to the officer for the unguarded ditch, because the officer was a licensee,
but she is not liable to the trespassing mugger.
D. Charlo#e 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 a0er 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 me of the fire.
, C. Antonia, because life tenants can recover the en re value of the property that they insure.
D. Emil, because he will ul mately own the property.
C. Antonia, because life tenants can recover the en re 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.
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 me 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. En re.
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 par es to the contract contemplated separate compensa on for
each installment of the performance. Failure to perform one installment is not failure to
perform the en re agreement. If the contract is divided into parts only to provide periodic
payments toward the full amount due upon contract comple on, the contract is an en re
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 un l full
performance has been completed.
Fa ma 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.
B. Business invitee.
