AU 62 EXAM UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Liability loss exposure
Answer:
Any condition or situation that presents the possibility of a claim alleging legal
responsibility of a person or business for injury or damage suffered by another
party
Question:
2. Legal liability
Answer:
The legally enforceable obligation of a person or an organization to pay a sum of
money (called damages) to another person or organization.
Question:
3. Civil law
Answer:
A classification of law that applies to legal matters not governed by criminal law
and that protects rights and provides remedies for breaches of duties owed to
others
Question:
4. Criminal law
Answer:
The branch of the law that imposes penalties for wrongs against society
Question:
5. Civil wrong
Answer:
A wrong against a person or persons, for which remedies include damages
awarded to the victim and court-ordered injunctions to prevent further injury.
Question:
6. Crimes
Answer:
Certain activities deemed by society to be harmful to public welfare
, Question:
7. Damages
Answer:
Money claimed by, or a monetary award to, a party who has suffered loss or injury
for which another party is legally responsible
Question:
8. Tort
Answer:
A wrongful act or an omission, other than a crime or a breach of contract, that
invades a legally protected right
Question:
9. Negligence
Answer:
The failure to exercise the degree of care that a reasonable person in a similar
situation would exercise to avoid harming others.
Question:
10. Intentional tort
Answer:
A tort committed by a person who foresees (or should be able to foresee) that his
or her act will harm another person
Question:
11. Strict liability (absolute liability)
Answer:
Liability imposed by a court or by a statute in the absence of fault when harm
results from activities or conditions that are extremely dangerous, unnatural,
ultrahazardous, extraordinary, abnormal, or inappropriate
Question:
12. Contract
Answer:
A legally enforceable agreement between two or more parties
Question:
13. Breach of contract
Answer:
The failure, without legal excuse, to fulfill a contractual promise.
CORRECT ANSWERS
Question:
1. Liability loss exposure
Answer:
Any condition or situation that presents the possibility of a claim alleging legal
responsibility of a person or business for injury or damage suffered by another
party
Question:
2. Legal liability
Answer:
The legally enforceable obligation of a person or an organization to pay a sum of
money (called damages) to another person or organization.
Question:
3. Civil law
Answer:
A classification of law that applies to legal matters not governed by criminal law
and that protects rights and provides remedies for breaches of duties owed to
others
Question:
4. Criminal law
Answer:
The branch of the law that imposes penalties for wrongs against society
Question:
5. Civil wrong
Answer:
A wrong against a person or persons, for which remedies include damages
awarded to the victim and court-ordered injunctions to prevent further injury.
Question:
6. Crimes
Answer:
Certain activities deemed by society to be harmful to public welfare
, Question:
7. Damages
Answer:
Money claimed by, or a monetary award to, a party who has suffered loss or injury
for which another party is legally responsible
Question:
8. Tort
Answer:
A wrongful act or an omission, other than a crime or a breach of contract, that
invades a legally protected right
Question:
9. Negligence
Answer:
The failure to exercise the degree of care that a reasonable person in a similar
situation would exercise to avoid harming others.
Question:
10. Intentional tort
Answer:
A tort committed by a person who foresees (or should be able to foresee) that his
or her act will harm another person
Question:
11. Strict liability (absolute liability)
Answer:
Liability imposed by a court or by a statute in the absence of fault when harm
results from activities or conditions that are extremely dangerous, unnatural,
ultrahazardous, extraordinary, abnormal, or inappropriate
Question:
12. Contract
Answer:
A legally enforceable agreement between two or more parties
Question:
13. Breach of contract
Answer:
The failure, without legal excuse, to fulfill a contractual promise.
