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AIC 301 - Test Prep Exam Questions And
Answers Latest Updated 2025 |100%
Verified.
Which one of the following statements correctly expresses a distinction between waiver and
estoppel?
A. Only waiver prevents an insurer from reviving a defense it has forfeited earlier.
B. The parol evidence rule applies to estoppel, but not to waiver.
C. Estoppel is contractual in nature, but waiver is equitable in nature.
D. Estoppel requires resulting injury or detriment by the party asserting it. - Answer✔D.
Estoppel requires resulting injury or detriment by the party asserting it.
Allison sued George for breach of contract and the term "contractual consideration" was at
issue. In court, the term would be given its
Select one:
A. Legal meaning.
B. Technical meaning.
C. Dictionary definition.
D. Common usage meaning. - Answer✔A. Legal meaning.
Paul and Jerry were both six years old when they entered a neighbor's home and used baseball
bats to smash and break household items. When establishing liability for Paul's and Jerry's
actions, the court will most likely primarily consider
Select one:
1
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A. Their vicarious liability as children.
B. It as a mass tort action.
C. It to be liability by conspiracy.
D. The tortfeasors' capacity. - Answer✔D. The tortfeasors' capacity.
Andrew promised Katy he would roof her house on October 30. On October 15, Andrew told
Katy he could not find the correct shingles and stated he was probably going to be too busy to
do the job. Andrew has
Select one:
A. Not repudiated the contract.
B. Rescinded the contract.
C. Breached the contract.
D. Voided the contract. - Answer✔A. Not repudiated the contract.
The City of Denbar contracts with Water Company to maintain adequate water pressure in its
fire hydrants. Bob's home in Denbar catches fire and cannot be saved due to inadequate water
pressure. What rights does Bob have under Denbar's contract with Water Company?
Select one:
A. None, because the contract is with Denbar and Bob is not a named beneficiary.
B. Bob has enforceable rights under the contract that Denbar negotiated on behalf of its
citizens.
C. Bob is a third-party beneficiary to the contract with fully enforceable rights.
D. None, because Bob is an incidental beneficiary with no enforceable rights. - Answer✔D.
None, because Bob is an incidental beneficiary with no enforceable rights.
Even though an assignor has not yet advised an obligor of an assignment, a valid assignment is
effective
Select one:
A. Immediately.
B. When initially communicated to the assignee.
C. Only if the assignment is in writing.
2
AIC 301 - Test Prep Exam Questions And
Answers Latest Updated 2025 |100%
Verified.
Which one of the following statements correctly expresses a distinction between waiver and
estoppel?
A. Only waiver prevents an insurer from reviving a defense it has forfeited earlier.
B. The parol evidence rule applies to estoppel, but not to waiver.
C. Estoppel is contractual in nature, but waiver is equitable in nature.
D. Estoppel requires resulting injury or detriment by the party asserting it. - Answer✔D.
Estoppel requires resulting injury or detriment by the party asserting it.
Allison sued George for breach of contract and the term "contractual consideration" was at
issue. In court, the term would be given its
Select one:
A. Legal meaning.
B. Technical meaning.
C. Dictionary definition.
D. Common usage meaning. - Answer✔A. Legal meaning.
Paul and Jerry were both six years old when they entered a neighbor's home and used baseball
bats to smash and break household items. When establishing liability for Paul's and Jerry's
actions, the court will most likely primarily consider
Select one:
1
, ©EVERLY 2025 ALL RIGHTS RESERVED
A. Their vicarious liability as children.
B. It as a mass tort action.
C. It to be liability by conspiracy.
D. The tortfeasors' capacity. - Answer✔D. The tortfeasors' capacity.
Andrew promised Katy he would roof her house on October 30. On October 15, Andrew told
Katy he could not find the correct shingles and stated he was probably going to be too busy to
do the job. Andrew has
Select one:
A. Not repudiated the contract.
B. Rescinded the contract.
C. Breached the contract.
D. Voided the contract. - Answer✔A. Not repudiated the contract.
The City of Denbar contracts with Water Company to maintain adequate water pressure in its
fire hydrants. Bob's home in Denbar catches fire and cannot be saved due to inadequate water
pressure. What rights does Bob have under Denbar's contract with Water Company?
Select one:
A. None, because the contract is with Denbar and Bob is not a named beneficiary.
B. Bob has enforceable rights under the contract that Denbar negotiated on behalf of its
citizens.
C. Bob is a third-party beneficiary to the contract with fully enforceable rights.
D. None, because Bob is an incidental beneficiary with no enforceable rights. - Answer✔D.
None, because Bob is an incidental beneficiary with no enforceable rights.
Even though an assignor has not yet advised an obligor of an assignment, a valid assignment is
effective
Select one:
A. Immediately.
B. When initially communicated to the assignee.
C. Only if the assignment is in writing.
2
