AIC 301 COMBINED SET EXAM
QUESTIONS WITH CORRECT
ANSWERS
What is negligent entrustment? - Answer-Negligent entrustment is 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
Each type of bailment requires a different degree of care. What degree of care would be
required of a bailee who borrows his neighbor's lawn mower? - Answer-The borrowing
of the lawn mower, which benefits solely the bailee, requires extraordinary care on the
part of the bailee
Nicoya, James, and Malcolm are joint tenants in a four-unit apartment building. Nicoya
and Malcolm are single, but James has a spouse and one minor child. What do you
think would happen to James's ownership interest if he died? - Answer-James's
ownership interest would go to Nicoya and Malcolm equally if he died. His spouse and
child have no interest in the property.
How do joint tenancies and tenancies in common differ - Answer-In joint tenancies, the
estate goes entirely to the other joint tenant in the event of one joint tenant's death.
Also, with two joint tenants, each must hold a one-half share. One of the joint tenants
cannot be subject to a condition that does not apply to the others. The same deed must
name them all as owners. Tenancies in common, however, involve no survivorship,
allow parties to own unequal shares, and do not require parties to derive their interests
in the same deed from the same grantor
Irene and Marco have entered into a tenancy by the entirety. How is this type of
ownership characterized? - Answer-A tenancy by the entirety involves a husband and
wife. A sale or contract to sell does not sever the tenancy, and individual creditors of
either the husband or wife cannot subject the property to a claim. Also, unless both
spouses are found liable for the same tort, judgment creditors cannot execute on the
marital property. Finally, neither party individually owns a portion that can be
mortgaged.
What are the two legal elements of condominium ownership? - Answer-The two legal
elements of condominium ownership are individual ownership of a unit, or separate,
defined area, and an undivided interest in common or public areas that serve all
individual units
, Alfonzo owns a house that sits on a quarter-acre of land. Lately, he has been irritated by
a drone flying across his yard several times a day. As a landowner, what are Alfonzo's
limited rights over his airspace? - Answer-An owner can halt unauthorized intrusion into
their airspace, such as projections from an adjoining building or utility lines stretched
across the airspace. But generally, aircraft can be flown over land as long as it doesn't
interfere unreasonably with the owner's use and enjoyment of the land. In Alfonzo's
case, he could likely put a stop to the irritating drone he describes
Gloria has a peaceful stream passing through the property of her new home. As the
landowner, what are her water rights in this instance? - Answer-As the owner of the
property with the stream passing through it, Gloria can use as much water from the
waterway as needed for domestic purposes. If she wished to use the water for industrial
purposes, she would have to limit herself to a reasonable amount and consider
downstream owners' needs.
What is the landlord's primary duty? - Answer-The landlord's primary duty is to deliver
possession of the premises to the tenant on the lease's inception date.
Colin's apartment lease has terminated, but he refuses to move. How can his landlord
remedy this situation? - Answer-The landlord can remedy Colin's refusal to leave by
evicting him with court assistance. The landlord must send Colin a written notice
terminating the tenancy and demanding possession. After a period of time, the landlord
can serve a summons and complaint, and a hearing will be held. If the landlord
establishes a right to possession, the court will enter an order of repossession followed
by a warrant of removal.
Abigail is a tenant in an apartment building. What are her primary rights and duties as a
tenant? - Answer-Abigail's has a primary right to occupy the premises. She must pay
rent and leave the premises in the same condition it was in at the lease inception,
except for reasonable wear and tear.
Who is liable for injuries to third parties on rented or leased property? - Answer-
Landlords are liable to third parties for injuries sustained on the leased premises to the
same extent they are liable to tenants. Liability is restricted to a landlord's negligent acts
or latent defects on the premises
Flynn wants to know what a document of title is. How is it defined under UCC 6-201 (b)
(16)? - Answer-UCC 2-201 (b) (16) defines a document of title as a bill of lading, dock
warrant, dock receipt, warehouse receipt, order for the delivery of goods, or any other
document that, in the regular course of business or financing, adequately proves that
the possessor is entitled to receive, hold, and dispose of the document and the goods it
covers.
John has received a warehouse receipt for his goods. What information should be
included on this receipt? - Answer-The warehouse operator would have provided John
QUESTIONS WITH CORRECT
ANSWERS
What is negligent entrustment? - Answer-Negligent entrustment is 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
Each type of bailment requires a different degree of care. What degree of care would be
required of a bailee who borrows his neighbor's lawn mower? - Answer-The borrowing
of the lawn mower, which benefits solely the bailee, requires extraordinary care on the
part of the bailee
Nicoya, James, and Malcolm are joint tenants in a four-unit apartment building. Nicoya
and Malcolm are single, but James has a spouse and one minor child. What do you
think would happen to James's ownership interest if he died? - Answer-James's
ownership interest would go to Nicoya and Malcolm equally if he died. His spouse and
child have no interest in the property.
How do joint tenancies and tenancies in common differ - Answer-In joint tenancies, the
estate goes entirely to the other joint tenant in the event of one joint tenant's death.
Also, with two joint tenants, each must hold a one-half share. One of the joint tenants
cannot be subject to a condition that does not apply to the others. The same deed must
name them all as owners. Tenancies in common, however, involve no survivorship,
allow parties to own unequal shares, and do not require parties to derive their interests
in the same deed from the same grantor
Irene and Marco have entered into a tenancy by the entirety. How is this type of
ownership characterized? - Answer-A tenancy by the entirety involves a husband and
wife. A sale or contract to sell does not sever the tenancy, and individual creditors of
either the husband or wife cannot subject the property to a claim. Also, unless both
spouses are found liable for the same tort, judgment creditors cannot execute on the
marital property. Finally, neither party individually owns a portion that can be
mortgaged.
What are the two legal elements of condominium ownership? - Answer-The two legal
elements of condominium ownership are individual ownership of a unit, or separate,
defined area, and an undivided interest in common or public areas that serve all
individual units
, Alfonzo owns a house that sits on a quarter-acre of land. Lately, he has been irritated by
a drone flying across his yard several times a day. As a landowner, what are Alfonzo's
limited rights over his airspace? - Answer-An owner can halt unauthorized intrusion into
their airspace, such as projections from an adjoining building or utility lines stretched
across the airspace. But generally, aircraft can be flown over land as long as it doesn't
interfere unreasonably with the owner's use and enjoyment of the land. In Alfonzo's
case, he could likely put a stop to the irritating drone he describes
Gloria has a peaceful stream passing through the property of her new home. As the
landowner, what are her water rights in this instance? - Answer-As the owner of the
property with the stream passing through it, Gloria can use as much water from the
waterway as needed for domestic purposes. If she wished to use the water for industrial
purposes, she would have to limit herself to a reasonable amount and consider
downstream owners' needs.
What is the landlord's primary duty? - Answer-The landlord's primary duty is to deliver
possession of the premises to the tenant on the lease's inception date.
Colin's apartment lease has terminated, but he refuses to move. How can his landlord
remedy this situation? - Answer-The landlord can remedy Colin's refusal to leave by
evicting him with court assistance. The landlord must send Colin a written notice
terminating the tenancy and demanding possession. After a period of time, the landlord
can serve a summons and complaint, and a hearing will be held. If the landlord
establishes a right to possession, the court will enter an order of repossession followed
by a warrant of removal.
Abigail is a tenant in an apartment building. What are her primary rights and duties as a
tenant? - Answer-Abigail's has a primary right to occupy the premises. She must pay
rent and leave the premises in the same condition it was in at the lease inception,
except for reasonable wear and tear.
Who is liable for injuries to third parties on rented or leased property? - Answer-
Landlords are liable to third parties for injuries sustained on the leased premises to the
same extent they are liable to tenants. Liability is restricted to a landlord's negligent acts
or latent defects on the premises
Flynn wants to know what a document of title is. How is it defined under UCC 6-201 (b)
(16)? - Answer-UCC 2-201 (b) (16) defines a document of title as a bill of lading, dock
warrant, dock receipt, warehouse receipt, order for the delivery of goods, or any other
document that, in the regular course of business or financing, adequately proves that
the possessor is entitled to receive, hold, and dispose of the document and the goods it
covers.
John has received a warehouse receipt for his goods. What information should be
included on this receipt? - Answer-The warehouse operator would have provided John
