AIC 301 STUDY GUIDE 2027 QUESTIONS WITH
ANSWERS GRADED A+
◉ 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
ANSWERS GRADED A+
◉ 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
