AIC 301 - Final Exam Prep Questions
With New Update Solutions
/. The act of leaving a dangerous article such as a gun or car with a person who the
lender knows, or should know, is likely to use it in an unreasonably risky manner is
known as
Select one:
A. Negligent entrustment.
B. Contributory negligence.
C. Negligent supervision.
D. The dangerous instrumentality doctrine. - Answer-✅A. Negligent entrustment.
/.There was a large unmarked sinkhole on Charlotte's property, a short distance from a
public road. One evening, a police officer chased a mugger off the road and onto
Charlotte's property. Both the officer and the mugger fell into the hole and were injured.
Which one of the following best answers whether Charlotte is liable for the injuries to the
police officer and/or to the mugger?
Select one:
A. Charlotte is not liable to either the officer or the mugger, because occupiers of land
have no duty to correct defects abutting sidewalks or streets.
B. Charlotte is liable to both the officer and the mugger, because she had a duty to
avoid endangering travelers with an unguarded ditch.
C. Charlotte is not liable to the officer or the mugger, because they were both
trespassers on her property.
D. Charlotte is liable to the officer for the unguarded ditch, because the officer was a
licensee, but she is not liable to the tres - Answer-✅D. Charlotte is liable to the officer
for the unguarded ditch, because the officer was a licensee, but she is not liable to the
trespassing mugger.
/.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. - Answer-✅C. Antonia, because
life tenants can recover the entire value of the property that they insure.
, /.Cristobal is in the process of purchasing a home from Leah. They are in the executory
period. This means that
Select one:
A. Cristobal and Leah have signed the real estate sales contract, but have not yet
closed.
B. Cristobal has made an offer and Leah has accepted verbally.
C. Cristobal and Leah have signed the real estate sales contract and have gone to
closing.
D. Cristobal has made a verbal offer, which Leah is considering. - Answer-✅A.
Cristobal and Leah have signed the real estate sales contract, but have not yet closed.
/.Kirk contracts with Ernest for five shipments of fresh produce at a specific price per
shipment due at the time of delivery. Kirk fails to ship the third shipment. The contract
between Kirk and Ernest is
Select one:
A. Void.
B. Unilateral.
C. Divisible.
D. Entire. - Answer-✅C. Divisible. A contract is divisible if each party's performance can
be divided into two or more parts and if it appears that the parties to the contract
contemplated separate compensation for each installment of the performance. Failure
to perform one installment is not failure to perform the entire agreement. If the contract
is divided into parts only to provide periodic payments toward the full amount due upon
contract completion, the contract is an entire contract, not a divisible one. When
possible, courts prefer to interpret contracts as divisible to avoid hardships that can
result from delaying payments under the contract until full performance has been
completed.
/.Fatima owns a cafe that is open to the public. Kaito enters the cafe and orders a
coffee. Kaito is a(n)
Select one:
A. Public invitee.
B. Business invitee.
C. Express licensee.
D. Trespasser. - Answer-✅B. Business invitee.
/.James wants to pursue a legal claim against his neighbor, but he does not know what
kind of dispute resolution procedure is the best choice for his situation. The dispute is
over a relatively small amount of money, so James does not want to spend a lot in
pursuit of his claim. James wants to be able to present his side of the story and his
witnesses before a neutral third party. James would be pleased if he and his neighbor
could reach a compromise, but, ideally, James wants to be able to walk away with a
binding decision. Assuming that James' neighbor will agree to participate in whatever
procedure James suggests, which one of the following dispute resolution procedures is
the best choice for James?
With New Update Solutions
/. The act of leaving a dangerous article such as a gun or car with a person who the
lender knows, or should know, is likely to use it in an unreasonably risky manner is
known as
Select one:
A. Negligent entrustment.
B. Contributory negligence.
C. Negligent supervision.
D. The dangerous instrumentality doctrine. - Answer-✅A. Negligent entrustment.
/.There was a large unmarked sinkhole on Charlotte's property, a short distance from a
public road. One evening, a police officer chased a mugger off the road and onto
Charlotte's property. Both the officer and the mugger fell into the hole and were injured.
Which one of the following best answers whether Charlotte is liable for the injuries to the
police officer and/or to the mugger?
Select one:
A. Charlotte is not liable to either the officer or the mugger, because occupiers of land
have no duty to correct defects abutting sidewalks or streets.
B. Charlotte is liable to both the officer and the mugger, because she had a duty to
avoid endangering travelers with an unguarded ditch.
C. Charlotte is not liable to the officer or the mugger, because they were both
trespassers on her property.
D. Charlotte is liable to the officer for the unguarded ditch, because the officer was a
licensee, but she is not liable to the tres - Answer-✅D. Charlotte is liable to the officer
for the unguarded ditch, because the officer was a licensee, but she is not liable to the
trespassing mugger.
/.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. - Answer-✅C. Antonia, because
life tenants can recover the entire value of the property that they insure.
, /.Cristobal is in the process of purchasing a home from Leah. They are in the executory
period. This means that
Select one:
A. Cristobal and Leah have signed the real estate sales contract, but have not yet
closed.
B. Cristobal has made an offer and Leah has accepted verbally.
C. Cristobal and Leah have signed the real estate sales contract and have gone to
closing.
D. Cristobal has made a verbal offer, which Leah is considering. - Answer-✅A.
Cristobal and Leah have signed the real estate sales contract, but have not yet closed.
/.Kirk contracts with Ernest for five shipments of fresh produce at a specific price per
shipment due at the time of delivery. Kirk fails to ship the third shipment. The contract
between Kirk and Ernest is
Select one:
A. Void.
B. Unilateral.
C. Divisible.
D. Entire. - Answer-✅C. Divisible. A contract is divisible if each party's performance can
be divided into two or more parts and if it appears that the parties to the contract
contemplated separate compensation for each installment of the performance. Failure
to perform one installment is not failure to perform the entire agreement. If the contract
is divided into parts only to provide periodic payments toward the full amount due upon
contract completion, the contract is an entire contract, not a divisible one. When
possible, courts prefer to interpret contracts as divisible to avoid hardships that can
result from delaying payments under the contract until full performance has been
completed.
/.Fatima owns a cafe that is open to the public. Kaito enters the cafe and orders a
coffee. Kaito is a(n)
Select one:
A. Public invitee.
B. Business invitee.
C. Express licensee.
D. Trespasser. - Answer-✅B. Business invitee.
/.James wants to pursue a legal claim against his neighbor, but he does not know what
kind of dispute resolution procedure is the best choice for his situation. The dispute is
over a relatively small amount of money, so James does not want to spend a lot in
pursuit of his claim. James wants to be able to present his side of the story and his
witnesses before a neutral third party. James would be pleased if he and his neighbor
could reach a compromise, but, ideally, James wants to be able to walk away with a
binding decision. Assuming that James' neighbor will agree to participate in whatever
procedure James suggests, which one of the following dispute resolution procedures is
the best choice for James?
