AIC 301 EXAM QUESTIONS WITH

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AIC 301 EXAM QUESTIONS WITH

ALL 100% CORRECT ANSWER S

Question : 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:

• Negligent entrustment.
• Contributory negligence.
• Negligent supervision.
• The dangerous instrumentality doctrine.

CORRECT ANSWER : A. Negligent entrustment.

Question : 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?

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Select one:

• 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.

• Charlotte is liable to both the officer and the mugger,

because she had a duty to avoid endangering travelers with an unguarded ditch.

• Charlotte is not liable to the officer or the mugger,

because they were both trespassers on her property.

• 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.

CORRECT 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.

Question : 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

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destroyed by fire during Antonia's life estate. Richley must pay the insurance policy proceeds to

Select one:

• Emil, under the doctrine of equitable conversion.
• Antonia, since she occupied the house at the time of

the fire.

• Antonia, because life tenants can recover the entire

value of the property that they insure.

• Emil, because he will ultimately own the property.

CORRECT ANSWER : C. Antonia, because life tenants

can recover the entire value of the property that they insure.

Question : Cristobal is in the process of purchasing a

home from Leah. They are in the executory period. This means that

Select one:

• Cristobal and Leah have signed the real estate sales

contract, but have not yet closed.

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• Cristobal has made an offer and Leah has accepted

verbally.

• Cristobal and Leah have signed the real estate sales

contract and have gone to closing.

• Cristobal has made a verbal offer, which Leah is

considering.

CORRECT ANSWER : A. Cristobal and Leah have

signed the real estate sales contract, but have not yet closed.

Question : 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:

• Void.
• Unilateral.
• Divisible.
• Entire.