RMIN 5100S Exam #3 Latest Update
2026 (Questions and Answers-Verified
solutions)
What is the difference between criminal and civil law? -
Correct Answers ✅Criminal law refers to crimes against
society, in which the state brings charges to court. Punishable
by imprisonment and fines.
Civil law refers to a breach of duty owed to others. Punishable
by money and injunctions.
What are the three bases for legal liability? - Correct
Answers ✅Torts
- Negligence, Intentional, Strict Liability
Contracts
- Breach of Contracts, Contractual liability
Statutes
- Worker's Compensation, Dram Shop
List the costs, covered under general liability policies, that
might result from a liability claim - Correct Answers ✅The
costs of defending against the claim, as well as any damages
for which the insured may be found liable, might result from a
liability claim.
,RMIN 5100S Exam #3 Latest Update
2026 (Questions and Answers-Verified
solutions)
Explain how a business can experience a liability loss even if
it is found not to be legally liable - Correct Answers ✅Even
if found not legally liable, a business can have a liability loss
because it has experienced the costs of defending against
the suit.
Identify the elements of the tort of negligence - Correct
Answers ✅The elements of the tort of negligence include:
- A duty owed to another person
- A breach of that duty
- A close causal connection between the breach of duty and
the resulting harm
- The occurrence of actual loss or damage of a type
recognized by law and measured in monetary terms
Define and give an example of intentional torts and strict
liability torts - Correct Answers ✅Intentional torts = an act
a person can foresee (or should be able to foresee) will harm
another person, such as libel; act doesn't necessarily have to
be performed with hostile or malicious intent.
Strict liability = absolute liability for abnormally dangerous
instrumentalities (for example, wild animals), ultra-hazardous
activities (such as blasting), and dangerously defective
products. Strict liability is also imposed by statutes (for
example, workers compensation laws)
,RMIN 5100S Exam #3 Latest Update
2026 (Questions and Answers-Verified
solutions)
Give an example of a breach of contract and a hold-harmless
agreement. - Correct Answers ✅Breach of Contract
Example:
- A store sells a bike to Jimmy that has a defective frame,
which breaks a week after it is sold. Jimmy is injured while
riding the bicycle, therefore the store may be held legally
liable for Jimmy's injuries. The seller has breached an implied
warranty that the bicycle is fit for use and probably also an
express warranty that the bicycle is free from defects.
Hold-Harmless Agreement Example:
- A lease on an apartment building obligates Sue, a tenant, to
hold the landlord harmless against any liability claims made
against the landlord by any person injured on the leased
premises. With this lease, Sue is agreeing by contract to
accept liability and pay any claims against the landlord for
persons injured in her apartment.
Agnes owns and operates an exotic pet store. Her most
popular pets include varieties of poisonous spiders, scorpions,
and snakes. Agnes is meticulous about stocking only legal
pets and checking the background of buyers before every
sale. One day a scorpion she sold to a customer escapes from
the customer's home and injures a neighbor. Explain what
type of tort any potential liability for Agnes might be based
on. - Correct Answers ✅Agnes may be liable under strict
, RMIN 5100S Exam #3 Latest Update
2026 (Questions and Answers-Verified
solutions)
liability. Though she acted neither negligently nor with intent
to cause harm, this is how she might still be found liable in
this instance (maybe statutes?)
The premises and operations liability loss exposure relates to
liability for BI/PD caused by accidents arising out of two sets
of circumstances. Describe them. - Correct Answers ✅1.
An accident that occurs on an organization's owned, leased,
or rented premises
2. An accident that arises out of the organization's ongoing
(as opposed to completed) operations but occurs away from
the premises.
Name the three elements a plaintiff must prove in order to
recover in a products liability suit based on strict liability in
tort. - Correct Answers ✅1. The product was defective
when it left the manufacturer's or supplier's custody or
control
2. The defective condition made the product unreasonably
dangerous
3. The defective product was the proximate cause of the
plaintiff's injury
Briefly describe common law and statutory law approaches to
imposing auto liability solely on the basis of auto ownership. -
2026 (Questions and Answers-Verified
solutions)
What is the difference between criminal and civil law? -
Correct Answers ✅Criminal law refers to crimes against
society, in which the state brings charges to court. Punishable
by imprisonment and fines.
Civil law refers to a breach of duty owed to others. Punishable
by money and injunctions.
What are the three bases for legal liability? - Correct
Answers ✅Torts
- Negligence, Intentional, Strict Liability
Contracts
- Breach of Contracts, Contractual liability
Statutes
- Worker's Compensation, Dram Shop
List the costs, covered under general liability policies, that
might result from a liability claim - Correct Answers ✅The
costs of defending against the claim, as well as any damages
for which the insured may be found liable, might result from a
liability claim.
,RMIN 5100S Exam #3 Latest Update
2026 (Questions and Answers-Verified
solutions)
Explain how a business can experience a liability loss even if
it is found not to be legally liable - Correct Answers ✅Even
if found not legally liable, a business can have a liability loss
because it has experienced the costs of defending against
the suit.
Identify the elements of the tort of negligence - Correct
Answers ✅The elements of the tort of negligence include:
- A duty owed to another person
- A breach of that duty
- A close causal connection between the breach of duty and
the resulting harm
- The occurrence of actual loss or damage of a type
recognized by law and measured in monetary terms
Define and give an example of intentional torts and strict
liability torts - Correct Answers ✅Intentional torts = an act
a person can foresee (or should be able to foresee) will harm
another person, such as libel; act doesn't necessarily have to
be performed with hostile or malicious intent.
Strict liability = absolute liability for abnormally dangerous
instrumentalities (for example, wild animals), ultra-hazardous
activities (such as blasting), and dangerously defective
products. Strict liability is also imposed by statutes (for
example, workers compensation laws)
,RMIN 5100S Exam #3 Latest Update
2026 (Questions and Answers-Verified
solutions)
Give an example of a breach of contract and a hold-harmless
agreement. - Correct Answers ✅Breach of Contract
Example:
- A store sells a bike to Jimmy that has a defective frame,
which breaks a week after it is sold. Jimmy is injured while
riding the bicycle, therefore the store may be held legally
liable for Jimmy's injuries. The seller has breached an implied
warranty that the bicycle is fit for use and probably also an
express warranty that the bicycle is free from defects.
Hold-Harmless Agreement Example:
- A lease on an apartment building obligates Sue, a tenant, to
hold the landlord harmless against any liability claims made
against the landlord by any person injured on the leased
premises. With this lease, Sue is agreeing by contract to
accept liability and pay any claims against the landlord for
persons injured in her apartment.
Agnes owns and operates an exotic pet store. Her most
popular pets include varieties of poisonous spiders, scorpions,
and snakes. Agnes is meticulous about stocking only legal
pets and checking the background of buyers before every
sale. One day a scorpion she sold to a customer escapes from
the customer's home and injures a neighbor. Explain what
type of tort any potential liability for Agnes might be based
on. - Correct Answers ✅Agnes may be liable under strict
, RMIN 5100S Exam #3 Latest Update
2026 (Questions and Answers-Verified
solutions)
liability. Though she acted neither negligently nor with intent
to cause harm, this is how she might still be found liable in
this instance (maybe statutes?)
The premises and operations liability loss exposure relates to
liability for BI/PD caused by accidents arising out of two sets
of circumstances. Describe them. - Correct Answers ✅1.
An accident that occurs on an organization's owned, leased,
or rented premises
2. An accident that arises out of the organization's ongoing
(as opposed to completed) operations but occurs away from
the premises.
Name the three elements a plaintiff must prove in order to
recover in a products liability suit based on strict liability in
tort. - Correct Answers ✅1. The product was defective
when it left the manufacturer's or supplier's custody or
control
2. The defective condition made the product unreasonably
dangerous
3. The defective product was the proximate cause of the
plaintiff's injury
Briefly describe common law and statutory law approaches to
imposing auto liability solely on the basis of auto ownership. -
