AIC 301 Quiz/Test Study Questions
And Answers
/. Market Share Liability - Answer-✅Applies when a product that has harmed a
consumer cannot be traced to a single manufacturer. They are liable unless they can
prove they could not have made the product involved.
/.A Defense to Fraud - Answer-✅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 - Answer-✅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) - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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
Conspiracy - Answer-✅Each producer held liable based on its market share
shifting burden of proof to each of several defendants when uncertain who caused the
injury; each must prove either they did not cause harm or someone else did
similar to alternative liability where once can be liable for damages of an entire industry,
plaintiff must sue all manufacturers; defendant not liable for entire amount but only their
pro rata share
And Answers
/. Market Share Liability - Answer-✅Applies when a product that has harmed a
consumer cannot be traced to a single manufacturer. They are liable unless they can
prove they could not have made the product involved.
/.A Defense to Fraud - Answer-✅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 - Answer-✅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) - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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 - Answer-✅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
Conspiracy - Answer-✅Each producer held liable based on its market share
shifting burden of proof to each of several defendants when uncertain who caused the
injury; each must prove either they did not cause harm or someone else did
similar to alternative liability where once can be liable for damages of an entire industry,
plaintiff must sue all manufacturers; defendant not liable for entire amount but only their
pro rata share
