AIC 301 UPDATED FINAL EXAMS ALL QUESTIONS
AND ANSWERS SURE A+
✔✔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 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.
✔✔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. - ✔✔B. Business invitee.
✔✔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 - ✔✔C. Arbitration
✔✔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.
B. Issue a unilateral reservation of rights letter.
C. Issue denial for failure to cooperate.
D. Ask Thomas to sign a reservation of rights letter. - ✔✔B. Issue a unilateral
reservation of rights letter.
✔✔Cathy left a bracelet at a jeweler for repair and was given a receipt with the
statement, "This establishment is not responsible for loss or damage to any item left in
its possession." Which one of the following does the statement on the receipt
represent?
Select one:
A. Assumption of risk
B. Comparative negligence
C. A hold harmless agreement
D. An exculpatory clause - ✔✔D. An exculpatory clause
✔✔Blithe Insurance wanted to enter the Jeweler's Block insurance market and began
drafting a new Jeweler's Block policy and insurance application form. Blithe believed it
was critical that all insureds under this policy must have a silent alarm system. Because
Blithe would not want to write Jeweler's Block insurance for any customer that did not
AND ANSWERS SURE A+
✔✔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 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.
✔✔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. - ✔✔B. Business invitee.
✔✔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 - ✔✔C. Arbitration
✔✔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.
B. Issue a unilateral reservation of rights letter.
C. Issue denial for failure to cooperate.
D. Ask Thomas to sign a reservation of rights letter. - ✔✔B. Issue a unilateral
reservation of rights letter.
✔✔Cathy left a bracelet at a jeweler for repair and was given a receipt with the
statement, "This establishment is not responsible for loss or damage to any item left in
its possession." Which one of the following does the statement on the receipt
represent?
Select one:
A. Assumption of risk
B. Comparative negligence
C. A hold harmless agreement
D. An exculpatory clause - ✔✔D. An exculpatory clause
✔✔Blithe Insurance wanted to enter the Jeweler's Block insurance market and began
drafting a new Jeweler's Block policy and insurance application form. Blithe believed it
was critical that all insureds under this policy must have a silent alarm system. Because
Blithe would not want to write Jeweler's Block insurance for any customer that did not
