AIC 301 Question Bank and Answers
(2026/2027) | Complete Study Prep
Pack | A+
• A Defense to Fraud -✓✓The defendant must make the representation with the
intent to influence the other party's action. If the defendant did not intend to
deceive, there is no proof of fraud.
• Community Property -✓✓Under the community property concept two types of
property can belong to a spouse - separate property as well as community property.
Separate property is the respective spouse's sole property and it is free from the
other spouse's interest or control.
• Parole Evidence Rule (PER) -✓✓The parole evidence rule provides that oral
evidence of agreements preceding or accompanying a written insurance policy
cannot be used to prove a waiver. Thus, the agent's oral statements made at this
time would not be admitted into evidence and thus would be ineffective as a
waiver.
A provision that prevents the terms of a contract from being modified by evidence
of oral or other agreements after the contract has been written.
• Defenses to Tort Fraud -✓✓The statement was not false
The statement did not relate to a material fact
The defendant did not know the statement was false
The defendant did not intend to deceive
The plaintiff did not rely on the statements
The plaintiff suffered no harm or or loss because of relying on the statement
• A Constructive Eviction -✓✓Actions or inactions of a landlord that create
conditions that prevent a tenant from enjoying a substantial or integral part of the
premise constitute a constructive eviction.
• Repudiation of a Contract -✓✓repudiation of a contract is the refusal to meet
obligations under the contract, but it must be positive and unequivocal to constitute
a breach. A statement of inability to perform in the future is not repudiation. A
, person cannot sue for breach of contract until due date and person has failed to
complete the job.
• Frustration of Purpose -✓✓A rental contract is useless to a person since the
original purpose for the rental was frustrated because the celebrity was not there.
Frustration of purpose can discharge a contract that is possible to perform, when a
supervening event destroys the propose or value of the contract, provided that both
parties are aware of that purpose or value.
• Direct Action Statutes
Garnishment -✓✓Third parties are generally not allowed to sue insurers of
negligent parties who injure them or damage their property. Some states have
enacted direct action statutes permitting third party sue insurer directly or both
insurer and insured/wrongdoer/tortfeasor directly
If insured denies claim payments after judgement, some states allow third party to
sue the insurer directly in a statutory action called garnishment.
• Consequential Damages -✓✓The loss of the entry fee money is an example of
consequential damages. Consequential damages are awarded by court to indemnify
injured parties for losses that result indirectly from a wrong, such as a breach of
contract as in this situation.
• Enterprise/Industry-Wide Liability
Alternative Liability
Market Share Liability
Concert of Action
(2026/2027) | Complete Study Prep
Pack | A+
• A Defense to Fraud -✓✓The defendant must make the representation with the
intent to influence the other party's action. If the defendant did not intend to
deceive, there is no proof of fraud.
• Community Property -✓✓Under the community property concept two types of
property can belong to a spouse - separate property as well as community property.
Separate property is the respective spouse's sole property and it is free from the
other spouse's interest or control.
• Parole Evidence Rule (PER) -✓✓The parole evidence rule provides that oral
evidence of agreements preceding or accompanying a written insurance policy
cannot be used to prove a waiver. Thus, the agent's oral statements made at this
time would not be admitted into evidence and thus would be ineffective as a
waiver.
A provision that prevents the terms of a contract from being modified by evidence
of oral or other agreements after the contract has been written.
• Defenses to Tort Fraud -✓✓The statement was not false
The statement did not relate to a material fact
The defendant did not know the statement was false
The defendant did not intend to deceive
The plaintiff did not rely on the statements
The plaintiff suffered no harm or or loss because of relying on the statement
• A Constructive Eviction -✓✓Actions or inactions of a landlord that create
conditions that prevent a tenant from enjoying a substantial or integral part of the
premise constitute a constructive eviction.
• Repudiation of a Contract -✓✓repudiation of a contract is the refusal to meet
obligations under the contract, but it must be positive and unequivocal to constitute
a breach. A statement of inability to perform in the future is not repudiation. A
, person cannot sue for breach of contract until due date and person has failed to
complete the job.
• Frustration of Purpose -✓✓A rental contract is useless to a person since the
original purpose for the rental was frustrated because the celebrity was not there.
Frustration of purpose can discharge a contract that is possible to perform, when a
supervening event destroys the propose or value of the contract, provided that both
parties are aware of that purpose or value.
• Direct Action Statutes
Garnishment -✓✓Third parties are generally not allowed to sue insurers of
negligent parties who injure them or damage their property. Some states have
enacted direct action statutes permitting third party sue insurer directly or both
insurer and insured/wrongdoer/tortfeasor directly
If insured denies claim payments after judgement, some states allow third party to
sue the insurer directly in a statutory action called garnishment.
• Consequential Damages -✓✓The loss of the entry fee money is an example of
consequential damages. Consequential damages are awarded by court to indemnify
injured parties for losses that result indirectly from a wrong, such as a breach of
contract as in this situation.
• Enterprise/Industry-Wide Liability
Alternative Liability
Market Share Liability
Concert of Action
