AIC 301 Question and Answer [2026] |
UPDATED ACTUAL Exam | Exam Script
Review
• 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 -✓✓ 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. -✓✓ 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. -✓✓ 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. -✓✓ 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. -✓✓ 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 -✓✓ C. Arbitration
UPDATED ACTUAL Exam | Exam Script
Review
• 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 -✓✓ 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. -✓✓ 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. -✓✓ 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. -✓✓ 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. -✓✓ 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 -✓✓ C. Arbitration
