FIN 341 EXAM 1 EXAMINATION TEST PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Examples of legal wrongs. Answer: Crime, Breach of contract, Tort
◉ Tort. Answer: a legal wrong for which the court allows a remedy
in the form of money damages
◉ Plaintiff. Answer: The person who is injured by the action of
another
◉ Tortfeasor. Answer: Can sue for damages
◉ intentional, strict liability, negligence. Answer: Torts fall into three
categories:
◉ Strict liability. Answer: liability is imposed regardless of
negligence or fault
◉ Negligence. Answer: The failure to exercise the standard care
required by law to protect others from an unreasonable risk of harm
,◉ Elements of Negligence. Answer: -Existence of a legal duty to use
reasonable care
-Failure to perform that duty
-Damage or injury to the claimant
-A proximate cause relationship between the negligent act and the
infliction of damages, which requires an unbroken chain of events
◉ Compensatory damages. Answer: compensate the victim for
losses actually incurred
◉ Special damages. Answer: provide compensation for medical
expenses
◉ General damages. Answer: provide compensation for pain and
suffering
◉ Punitive damages. Answer: designed to punish people and
organizations so that others are deterred from committing the same
wrongful act
◉ Examples of general damages. Answer: loss of companion,
disfigurement, pain and suffering
, ◉ Examples of special damages. Answer: Lost work earnings,
Medical bills, Property repair costs
◉ Law of Negligence. Answer: The ability to collect damages for
negligence depends on state law
◉ Contributory negligence law. Answer: the injured person cannot
collect damages if his or her care falls below the standard of care
required for his or her protection
◉ Strict application of law. Answer: the injured cannot collect
damages if his or her conduct contributed in any way to the injury
◉ Comparative negligence law. Answer: the financial burden of the
injury is shared by both parties according to their respective degrees
of fault
◉ Pure rule. Answer: you can collect damages even if you are
negligent, but your reward is reduced in proportion to your fault
◉ Last clear chance rule. Answer: states that a plaintiff who is
endangered by his or her own negligence can still recover damages
from the defendant if the defendant has a last clear chance to avoid
the accident but fails to do so
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Examples of legal wrongs. Answer: Crime, Breach of contract, Tort
◉ Tort. Answer: a legal wrong for which the court allows a remedy
in the form of money damages
◉ Plaintiff. Answer: The person who is injured by the action of
another
◉ Tortfeasor. Answer: Can sue for damages
◉ intentional, strict liability, negligence. Answer: Torts fall into three
categories:
◉ Strict liability. Answer: liability is imposed regardless of
negligence or fault
◉ Negligence. Answer: The failure to exercise the standard care
required by law to protect others from an unreasonable risk of harm
,◉ Elements of Negligence. Answer: -Existence of a legal duty to use
reasonable care
-Failure to perform that duty
-Damage or injury to the claimant
-A proximate cause relationship between the negligent act and the
infliction of damages, which requires an unbroken chain of events
◉ Compensatory damages. Answer: compensate the victim for
losses actually incurred
◉ Special damages. Answer: provide compensation for medical
expenses
◉ General damages. Answer: provide compensation for pain and
suffering
◉ Punitive damages. Answer: designed to punish people and
organizations so that others are deterred from committing the same
wrongful act
◉ Examples of general damages. Answer: loss of companion,
disfigurement, pain and suffering
, ◉ Examples of special damages. Answer: Lost work earnings,
Medical bills, Property repair costs
◉ Law of Negligence. Answer: The ability to collect damages for
negligence depends on state law
◉ Contributory negligence law. Answer: the injured person cannot
collect damages if his or her care falls below the standard of care
required for his or her protection
◉ Strict application of law. Answer: the injured cannot collect
damages if his or her conduct contributed in any way to the injury
◉ Comparative negligence law. Answer: the financial burden of the
injury is shared by both parties according to their respective degrees
of fault
◉ Pure rule. Answer: you can collect damages even if you are
negligent, but your reward is reduced in proportion to your fault
◉ Last clear chance rule. Answer: states that a plaintiff who is
endangered by his or her own negligence can still recover damages
from the defendant if the defendant has a last clear chance to avoid
the accident but fails to do so
