2024 AIC301 Law Final Exam With Answers (50 Solved Questions)

Name: 2024 AIC301 Law Final Exam With Answers (50 Solved Questions)
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AIC 301 - final exam with correct 100%
answers 2024
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. - answers-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 - answers-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. - answers-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. - answers-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. - answers-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. - answers-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?
Select one:
A. Mediation
B. Negotiation
C. Arbitration
D. Litigation - answers-C. Arbitration
Chloe is investigating Thomas' claim for damage to his automobile. Thomas is not
cooperating with Chloe's attempts to schedule an adjuster to inspect the vehicle. Chloe
should
Select one:

A. Issue a unilateral waiver of rights letter.
B. Issue a unilateral reservation of rights letter.
C. Issue denial for failure to cooperate.
D. Ask Thomas to sign a reservation of rights letter. - answers-B. Issue a unilateral
reservation of rights letter.
Cathy left a bracelet at a jeweler for repair and was given a receipt with the statement, "This
establishment is not responsible for loss or damage to any item left in its possession." Which
one of the following does the statement on the receipt represent?
Select one:
A. Assumption of risk
B. Comparative negligence
C. A hold harmless agreement
D. An exculpatory clause - answers-D. An exculpatory clause
Blithe Insurance wanted to enter the Jeweler's Block insurance market and began drafting a
new Jeweler's Block policy and insurance application form. Blithe believed it was critical that
all insureds under this policy must have a silent alarm system. Because Blithe would not
want to write Jeweler's Block insurance for any customer that did not have a silent alarm,
Blithe should draft its application and policy so that the customer's application statement
about whether it has a silent alarm would be
Select one:

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A. A warranty because an untrue statement would render the policy voidable, even if not
material.
B. An incontestable clause because the insured could not dispute the truth of the statement.
C. A designation because designated matters must be satisfied as a condition of coverage.
D. A representation because strict compliance with representations is required. - answers-A.
A warranty because an untrue statement would render the policy voidable, even if not
material. If the statement is a warranty, if it is untrue, the insurer may deny coverage even if
it doesn't involve a material matter. Warranties require strict compliance but representations
only require substantial truth.
Tommy agreed to mow Heidi's lawn on Wednesday for $35. Tommy then remembered that
he had a baseball game on Wednesday. He asked Heidi if it would be okay for his friend,
Jeremy, to mow her lawn, and Heidi could just pay the $35 directly to Jeremy. Heidi
expressly released Tommy from his obligation. This agreement is known as
Select one:
A. Contract reformation.
B. A novation.
C. An accord and satisfaction.
D. Substantial performance. - answers-B. A novation.
Gabriela is an insurance agent selling a property policy to Oscar. Before the policy was
issued, Gabriela assured Oscar that he would not have to add a sprinkler system to the
building he was insuring. After coverage was bound, there was a fire in the building and

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Oscar made a claim for the damages. The insurer denied coverage citing a policy provision
that the building be sprinklered. At trial, Gabriela's assurance that sprinklers were not
needed was
Select one:
A. Admissible because her statement created an implied waiver.
B. Inadmissible because the insurer's receipt of premium created an implied waiver.
C. Admissible because the insurer did not inspect the building before coverage.
D. Inadmissible because the parole evidence rule applies. - answers-D. Inadmissible
because the parole evidence rule applies.
Vladimir and Chin are neighbors and would like to enter into a contract to equally share in
the cost to construct a new block wall between their houses. Vladimir contacts a contractor
who provides a bid and he asks Chin to sign off on it. Chin refuses. Vladimir becomes upset
and threatens to sue Chin if he does not sign off. Reluctantly, Chin signs. Is this a voidable
contract?
Select one:
A. Yes, because Vladimir exercised undue influence over Chin who became fearful of
Vladimir.
B. Yes, because Vladimir's relationship with Chin was such that Chin was compelled to sign.
C. No, because all four of the elements of an enforceable contract remain intact.
D. No, because threat of a lawsuit is not considered sufficient to deprive Chin of his free will.
- answers-D. No, because threat of a lawsuit is not considered sufficient to deprive Chin of
his free will.

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2024 AIC301 Law Final Exam With Answers (50 Solved Questions)

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