AIC 301 FINAL PREPARATION EXAM QUESTIONS AND
12/09/2025
CORRECT ANSWER
AIC 301 FINAL PREPARATION EXAM QUESTIONS AND
CORRECT ANSWER 2025/2026 A+ GRADED
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
Select one:
A. Negligent entrustment.
B. Contributory negligence.
C. Negligent supervision.
D. The dangerous instrumentality doctrine.
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?
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 trespassing mugger.
QUESTION 3
, AIC 301 FINAL PREPARATION EXAM QUESTIONS AND
12/09/2025
CORRECT ANSWER
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.
QUESTION 4
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.
QUESTION 5
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
, AIC 301 FINAL PREPARATION EXAM QUESTIONS AND
12/09/2025
CORRECT ANSWER
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.
QUESTION 6
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.
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 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
QUESTION 8
Chloe is investigating Thomas' claim for damage to his automobile. Thomas is not cooperating with
Chloe's attempts to schedule an adjuster to inspect the vehicle. Chloe should
Select one:
A. Issue a unilateral waiver of rights letter.
12/09/2025
CORRECT ANSWER
AIC 301 FINAL PREPARATION EXAM QUESTIONS AND
CORRECT ANSWER 2025/2026 A+ GRADED
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
Select one:
A. Negligent entrustment.
B. Contributory negligence.
C. Negligent supervision.
D. The dangerous instrumentality doctrine.
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?
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 trespassing mugger.
QUESTION 3
, AIC 301 FINAL PREPARATION EXAM QUESTIONS AND
12/09/2025
CORRECT ANSWER
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.
QUESTION 4
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.
QUESTION 5
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
, AIC 301 FINAL PREPARATION EXAM QUESTIONS AND
12/09/2025
CORRECT ANSWER
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.
QUESTION 6
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.
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 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
QUESTION 8
Chloe is investigating Thomas' claim for damage to his automobile. Thomas is not cooperating with
Chloe's attempts to schedule an adjuster to inspect the vehicle. Chloe should
Select one:
A. Issue a unilateral waiver of rights letter.
