AIC 301 EXAM QUESTIONS AND ANSWERS LATEST
VERSION (ALREADY GRADED A+)
Colin's apartment lease has terminated, but he refuses to move. How can his landlord remedy this
situation?
The landlord can remedy Colin's refusal to leave by evicting him with court assistance. The landlord must
send Colin a written notice terminating the tenancy and demanding possession. After a period of time,
the landlord can serve a summons and complaint, and a hearing will be held. If the landlord establishes a
right to possession, the court will enter an order of repossession followed by a warrant of removal.
Abigail is a tenant in an apartment building. What are her primary rights and duties as a tenant?
Abigail's has a primary right to occupy the premises. She must pay rent and leave the premises in the
same condition it was in at the lease inception, except for reasonable wear and tear.
Who is liable for injuries to third parties on rented or leased property?
Landlords are liable to third parties for injuries sustained on the leased premises to the same extent
they are liable to tenants. Liability is restricted to a landlord's negligent acts or latent defects on the
premises
Flynn wants to know what a document of title is. How is it defined under UCC 6-201 (b) (16)?
UCC 2-201 (b) (16) defines a document of title as a bill of lading, dock warrant, dock receipt, warehouse
receipt, order for the delivery of goods, or any other document that, in the regular course of business or
financing, adequately proves that the possessor is entitled to receive, hold, and dispose of the document
and the goods it covers.
John has received a warehouse receipt for his goods. What information should be included on this
receipt?
The warehouse operator would have provided John with a receipt that describes the amount, type, and
condition of the goods and the conditions of storage
What are the two types of bills of lading that are used most frequently?
The two types of bills of lading that are used most frequently are the straight bill of lading and the order
bill of lading
What is the purpose of the Federal Trade Commission Act (FTC Act)?
The FTC Act prohibits unfair methods of competition and unfair or deceptive acts or practices that
restrict interstate commerce
Maurice lives in a state that doesn't have its own insurance-related antitrust legislation and worries
about the resulting lack of regulation of his insurer. How can his insurer reassure him?
, Maurice's insurer can reassure him by explaining that, while the FTC Act does not apply to the insurance
industry, if a state doesn't have antitrust legislation that applies to insurance, federal antitrust laws will
apply. Even if states do regulate insurance antitrust matters, federal antitrust laws can also apply to
insurance practices involving boycott, coercion, or intimidation
After purchasing an insurance policy, Maria learns that her producer misrepresented what was
covered by it. What recourse does Maria have against the insurer?
State laws vary, but generally, they prohibit unfair acts (oppressive or bad-faith conduct), deceptive acts
(fraud, deceit, and misrepresentation), and unfair methods of competition (including antitrust violations
such as price fixing and group boycotts). Misrepresentation and false advertising of policies are among
the unfair and deceptive insurance-related acts prohibited by states.
What is the purpose of the Truth in Lending Act?
In 1968, Congress passed the Consumer Credit Protection Act (Truth in Lending Act) to ensure that
consumers knew the terms and interest rates of their credit transactions
What are the four essential elements of negligence?
These are the four essential elements of negligence:
• The defendant owed a legal duty of care to the plaintiff.
The defendant breached the duty of care owed to the plaintiff. • The defendant's negligent act was the
proximate cause of the plaintiff's injury or damage.
• The plaintiff suffered actual injury or damage.
What is a reasonable person test and how is it used to prove breach of duty?
The reasonable person test is an external, objective test under which the defendant's individual or
personal judgment, or that of other parties involved, is not considered. The test is based on how a jury
perceives that a reasonable person would have acted and is a standard for the degree of care exercised
in a situation. Circumstances further qualify the reasonable person test
. What is concurrent causation and how does it relate to negligence?
Concurrent causation is a legal doctrine stating that if a loss can be attributed to two or more
independent concurrent causes—one or more excluded by the policy and one covered—then the policy
covers the loss. It arises when each of two or more defendants are liable for the entire harm, even
though the act of either would not have produced the harm
Could a plaintiff who is 51 percent at fault recover under the 50 percent comparative negligence rule
A plaintiff 51 percent at fault could not recover under the 50 percent comparative negligence rule.
How does the pure comparative negligence rule depart from the contributory negligence rule?
The principle of contributory negligence prevents a person who has been harmed from recovering
damages if that person's own negligence contributed in any way to the harm. Under the pure
comparative negligence rule, even a plaintiff who is 99 percent at fault can still recover 1 percent of the
claimed damages.
VERSION (ALREADY GRADED A+)
Colin's apartment lease has terminated, but he refuses to move. How can his landlord remedy this
situation?
The landlord can remedy Colin's refusal to leave by evicting him with court assistance. The landlord must
send Colin a written notice terminating the tenancy and demanding possession. After a period of time,
the landlord can serve a summons and complaint, and a hearing will be held. If the landlord establishes a
right to possession, the court will enter an order of repossession followed by a warrant of removal.
Abigail is a tenant in an apartment building. What are her primary rights and duties as a tenant?
Abigail's has a primary right to occupy the premises. She must pay rent and leave the premises in the
same condition it was in at the lease inception, except for reasonable wear and tear.
Who is liable for injuries to third parties on rented or leased property?
Landlords are liable to third parties for injuries sustained on the leased premises to the same extent
they are liable to tenants. Liability is restricted to a landlord's negligent acts or latent defects on the
premises
Flynn wants to know what a document of title is. How is it defined under UCC 6-201 (b) (16)?
UCC 2-201 (b) (16) defines a document of title as a bill of lading, dock warrant, dock receipt, warehouse
receipt, order for the delivery of goods, or any other document that, in the regular course of business or
financing, adequately proves that the possessor is entitled to receive, hold, and dispose of the document
and the goods it covers.
John has received a warehouse receipt for his goods. What information should be included on this
receipt?
The warehouse operator would have provided John with a receipt that describes the amount, type, and
condition of the goods and the conditions of storage
What are the two types of bills of lading that are used most frequently?
The two types of bills of lading that are used most frequently are the straight bill of lading and the order
bill of lading
What is the purpose of the Federal Trade Commission Act (FTC Act)?
The FTC Act prohibits unfair methods of competition and unfair or deceptive acts or practices that
restrict interstate commerce
Maurice lives in a state that doesn't have its own insurance-related antitrust legislation and worries
about the resulting lack of regulation of his insurer. How can his insurer reassure him?
, Maurice's insurer can reassure him by explaining that, while the FTC Act does not apply to the insurance
industry, if a state doesn't have antitrust legislation that applies to insurance, federal antitrust laws will
apply. Even if states do regulate insurance antitrust matters, federal antitrust laws can also apply to
insurance practices involving boycott, coercion, or intimidation
After purchasing an insurance policy, Maria learns that her producer misrepresented what was
covered by it. What recourse does Maria have against the insurer?
State laws vary, but generally, they prohibit unfair acts (oppressive or bad-faith conduct), deceptive acts
(fraud, deceit, and misrepresentation), and unfair methods of competition (including antitrust violations
such as price fixing and group boycotts). Misrepresentation and false advertising of policies are among
the unfair and deceptive insurance-related acts prohibited by states.
What is the purpose of the Truth in Lending Act?
In 1968, Congress passed the Consumer Credit Protection Act (Truth in Lending Act) to ensure that
consumers knew the terms and interest rates of their credit transactions
What are the four essential elements of negligence?
These are the four essential elements of negligence:
• The defendant owed a legal duty of care to the plaintiff.
The defendant breached the duty of care owed to the plaintiff. • The defendant's negligent act was the
proximate cause of the plaintiff's injury or damage.
• The plaintiff suffered actual injury or damage.
What is a reasonable person test and how is it used to prove breach of duty?
The reasonable person test is an external, objective test under which the defendant's individual or
personal judgment, or that of other parties involved, is not considered. The test is based on how a jury
perceives that a reasonable person would have acted and is a standard for the degree of care exercised
in a situation. Circumstances further qualify the reasonable person test
. What is concurrent causation and how does it relate to negligence?
Concurrent causation is a legal doctrine stating that if a loss can be attributed to two or more
independent concurrent causes—one or more excluded by the policy and one covered—then the policy
covers the loss. It arises when each of two or more defendants are liable for the entire harm, even
though the act of either would not have produced the harm
Could a plaintiff who is 51 percent at fault recover under the 50 percent comparative negligence rule
A plaintiff 51 percent at fault could not recover under the 50 percent comparative negligence rule.
How does the pure comparative negligence rule depart from the contributory negligence rule?
The principle of contributory negligence prevents a person who has been harmed from recovering
damages if that person's own negligence contributed in any way to the harm. Under the pure
comparative negligence rule, even a plaintiff who is 99 percent at fault can still recover 1 percent of the
claimed damages.
