- | Page
AIC 301 Exam Questions With 100% CORRECT ANSWERs
Question 1: 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
a) Negligent entrustment
b) Contributory negligence
c) Negligent supervision
d) The dangerous instrumentality doctrine
CORRECT ANSWER : a) Negligent entrustment
Question 2: 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?
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
- | Page
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 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 3: 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
a) Emil, under the doctrine of equitable conversion
b) Antonia, since she occupied the house at the time of the fire
- | Page
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
CORRECT ANSWER : c) Antonia, because life tenants can
recover the entire value of the property that they insure
Question 4: Cristobal is in the process of purchasing a home
from Leah. They are in the executory period. This means that
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
CORRECT ANSWER: a) Cristobal and Leah have signed the
real estate sales contract, but have not yet closed
Question 5: Kirk contracts with Ernest for five shipments of
fresh produce at a specific price per shipment due at the time of
- | Page
delivery. Kirk fails to ship the third shipment. The contract between Kirk and Ernest is
a) Void
b) Unilateral
c) Divisible
d) Entire
CORRECT ANSWER : c) Divisible
Question 6: Fatima owns a cafe that is open to the public. Kaito
enters the cafe and orders a coffee. Kaito is a(n)
a) Public invitee
b) Business invitee
c) Express licensee
d) Trespasser
CORRECT ANSWER : b) Business invitee
Question 7: 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