AIC 301 -Final Exam Prep Questions and Answers – 100% Solved
A product has been making people ill, and a number of the victims have filed a class-action
lawsuit against its manufacturer. Which one of the following sets of elements would the trial
court consider to certify this as a class action suit?
Select one:
A. Commonality, numerosity, adequacy of representation, typicality
B. Numerosity, commonality, typicality, amount of damages
C. Amount of damages, adequacy of representation, commonality, typicality
D. Adequacy of representation, numerosity, commonality, amount of damages - ✔✔✔-A.
Commonality, numerosity, adequacy of representation, typicality
A restaurant manager created a new method to cook French fries. Which one of the following
describes how the restaurant manager can protect his intellectual property rights?
Select one:
A. By registering a trade secret with the state.
B. By claiming part ownership in the restaurant
C. By obtaining a patent
D. By filing a copyright notice - ✔✔✔-C. By obtaining a patent. The restaurant manager can
protect his intellectual property rights by obtaining a patent. A patent applies to a new, useful,
nonobvious invention.
A special characteristic of an insurance policy is that it is a nontransferable contract. This
principle means that insureds may not transfer or assign their insurance policies
Select one:
A. Under any circumstances.
B. Except when directed to do so by the insurer.
C. Unless the insurer agrees to the assignment.
D. Except at expiration of the policy. - ✔✔✔-C. Unless the insurer agrees to the assignment.
,AIC 301 -Final Exam Prep Questions and Answers – 100% Solved
Aaron and Harry entered into a contract in which Aaron agreed to pay Harry to supply him with
lumber for $10,000 per load. When the cost of lumber increased, Harry renegotiated his
contract with Aaron and wrote the new terms of $12,000 per load on the contract by hand.
When there was a contract dispute and the case went to court, the judge
Select one:
A. Recognized the handwritten numbers over the words.
B. Enforced the original printed version of the contract.
C. Recognized the handwritten words over the words.
D. Voided the contract because it had been written on. - ✔✔✔-C. Recognized the handwritten
words over the words.
All of the following debts are not dischargeable in bankruptcy, EXCEPT:
Select one:
A. Services obtained by fraud
B. Most student loans
C. Payments owed on leases
D. Alimony - ✔✔✔-C. Payments owed on leases
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. - ✔✔✔-C. Antonia, because life tenants
can recover the entire value of the property that they insure.
, AIC 301 -Final Exam Prep Questions and Answers – 100% Solved
Argot Mutual drafts the wording of its insurance contracts. Because Argot determines the exact
wording of the contract, the insureds have no choice but to either accept the policy wording as
is, or purchase insurance elsewhere. Therefore, Argot's policy is considered to be a
Select one:
A. Contract of adhesion.
B. Conditional contract.
C. Contract of indemnity.
D. Contract of good faith. - ✔✔✔-A. Contract of adhesion.
As an insurance legal professional, Mehmet understands the importance of representations and
warranties in insurance policies. He knows that
Select one:
A. Representations are written in the policy or incorporated by reference, while warranties can
be oral or written.
B. The law presumes representations to be material while warranties must be proved to be
material.
C. Representations require strict compliance, while warranties require substantial truth.
D. Representations are indirect inducements to the contract, while warranties are part of the
final insurance contract. - ✔✔✔-D. Representations are indirect inducements to the contract,
while warranties are part of the final insurance contract.
Blithe Insurance wanted to enter the Jeweler's Block insurance market and began drafting a new
Jeweler's Block policy and insurance application form. Blithe believed it was critical that all
insureds under this policy must have a silent alarm system. Because Blithe would not want to
write Jeweler's Block insurance for any customer that did not have a silent alarm, Blithe should
draft its application and policy so that the customer's application statement about whether it
has a silent alarm would be
Select one:
A. A warranty because an untrue statement would render the policy voidable, even if not
material.
A product has been making people ill, and a number of the victims have filed a class-action
lawsuit against its manufacturer. Which one of the following sets of elements would the trial
court consider to certify this as a class action suit?
Select one:
A. Commonality, numerosity, adequacy of representation, typicality
B. Numerosity, commonality, typicality, amount of damages
C. Amount of damages, adequacy of representation, commonality, typicality
D. Adequacy of representation, numerosity, commonality, amount of damages - ✔✔✔-A.
Commonality, numerosity, adequacy of representation, typicality
A restaurant manager created a new method to cook French fries. Which one of the following
describes how the restaurant manager can protect his intellectual property rights?
Select one:
A. By registering a trade secret with the state.
B. By claiming part ownership in the restaurant
C. By obtaining a patent
D. By filing a copyright notice - ✔✔✔-C. By obtaining a patent. The restaurant manager can
protect his intellectual property rights by obtaining a patent. A patent applies to a new, useful,
nonobvious invention.
A special characteristic of an insurance policy is that it is a nontransferable contract. This
principle means that insureds may not transfer or assign their insurance policies
Select one:
A. Under any circumstances.
B. Except when directed to do so by the insurer.
C. Unless the insurer agrees to the assignment.
D. Except at expiration of the policy. - ✔✔✔-C. Unless the insurer agrees to the assignment.
,AIC 301 -Final Exam Prep Questions and Answers – 100% Solved
Aaron and Harry entered into a contract in which Aaron agreed to pay Harry to supply him with
lumber for $10,000 per load. When the cost of lumber increased, Harry renegotiated his
contract with Aaron and wrote the new terms of $12,000 per load on the contract by hand.
When there was a contract dispute and the case went to court, the judge
Select one:
A. Recognized the handwritten numbers over the words.
B. Enforced the original printed version of the contract.
C. Recognized the handwritten words over the words.
D. Voided the contract because it had been written on. - ✔✔✔-C. Recognized the handwritten
words over the words.
All of the following debts are not dischargeable in bankruptcy, EXCEPT:
Select one:
A. Services obtained by fraud
B. Most student loans
C. Payments owed on leases
D. Alimony - ✔✔✔-C. Payments owed on leases
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. - ✔✔✔-C. Antonia, because life tenants
can recover the entire value of the property that they insure.
, AIC 301 -Final Exam Prep Questions and Answers – 100% Solved
Argot Mutual drafts the wording of its insurance contracts. Because Argot determines the exact
wording of the contract, the insureds have no choice but to either accept the policy wording as
is, or purchase insurance elsewhere. Therefore, Argot's policy is considered to be a
Select one:
A. Contract of adhesion.
B. Conditional contract.
C. Contract of indemnity.
D. Contract of good faith. - ✔✔✔-A. Contract of adhesion.
As an insurance legal professional, Mehmet understands the importance of representations and
warranties in insurance policies. He knows that
Select one:
A. Representations are written in the policy or incorporated by reference, while warranties can
be oral or written.
B. The law presumes representations to be material while warranties must be proved to be
material.
C. Representations require strict compliance, while warranties require substantial truth.
D. Representations are indirect inducements to the contract, while warranties are part of the
final insurance contract. - ✔✔✔-D. Representations are indirect inducements to the contract,
while warranties are part of the final insurance contract.
Blithe Insurance wanted to enter the Jeweler's Block insurance market and began drafting a new
Jeweler's Block policy and insurance application form. Blithe believed it was critical that all
insureds under this policy must have a silent alarm system. Because Blithe would not want to
write Jeweler's Block insurance for any customer that did not have a silent alarm, Blithe should
draft its application and policy so that the customer's application statement about whether it
has a silent alarm would be
Select one:
A. A warranty because an untrue statement would render the policy voidable, even if not
material.
