RMI 4224 EXAM 2 QUESTIONS & ANSWERS
Which of the following is an element of negligence that must be present in order to
successfully establish negligence against an individual or organization?
A) Legal duty owed.
B) Breach of legal duty.
C) Proximate cause.
D) Damages.
E) All of the above. - Answer -E) All of the above.
Tom and Jerry go to a bar together to watch the Super Bowl. They drink six craft beers
each during the game. At the end of the game, Tom offers to drive Jerry home. Despite
having both the Uber and Lyft apps on his smart phone, Jerry accepts Tom's offer of a
ride home. A short time after leaving the bar, an intoxicated Tom drives off the road and
hits a tree. Jerry suffers a broken right ankle and facial abrasions as a result of the
passenger side airbag deploying.
Jerry retains an attorney and files suit against Tom for bodily injuries sustained as a
result of Tom's negligence. What is Tom's best legal defense to Jerry's bodily injury
lawsuit?
A) Jerry had the last clear chance to avoid getting injured
B) Jerry assumed the risk of accepting a ride home from an intoxicated Tom
C) A bailor-bailee relationship existed between Tom and Jerry
D) Jerry violated the state's Dram Shop Act by drinking beer for several hours - Answer
-B) Jerry assumed the risk of accepting a ride home from an intoxicated Tom
Barbara and Jennifer are both driving eastbound on Gaines Street in separate vehicles
on their way to Doak Campbell Stadium to watch the FSU v. Miami game. Barbara's
vehicle is directly in front of Jennifer's car. Barbara comes to complete stop at a red
light; unfortunately, Jennifer wasn't maintaining a proper lookout and tapped the rear
bumper of Barbara's Honda Accord with the front bumper of her Toyota Camry. Since it
was a very minor accident and both drivers agreed neither vehicle was damaged as a
result of this accident, Barbara and Jennifer didn't call the police and headed to the
football game.
Two months later, Jennifer was surprised to learn she had been sued by Barbara as a
result of this very minor impact auto accident that resulted in no damage to either
vehicle. Jennifer's best chance to get this case dismissed is to argue Barbara is unable
to prove this required element of a negligence cause of action - Answer -C) Barbara's
vehicle didn't sustain any damage as a result of Jennifer's negligence
Tom and Jerry are next door neighbors. One night, a tornado touched down in their
neighborhood causing a tree on Tom's property to fall onto the roof of Jerry's home.
,Jerry files suit against Tom for the damage to Jerry's home caused by Tom's fallen tree.
What is Tom's best defense to the lawsuit filed by Jerry?
A) Contributory negligence.
B) Comparative negligence.
C) Assumption of risk.
D) Act of God/Nature. - Answer -D) Act of God/Nature.
What is the legal concept that limits the amount of time a plaintiff has to initiate a lawsuit
for negligence against a person the plaintiff contends caused the plaintiff's
injuries/damages?
A) Statute of limitations.
B) Statute of perpetuities.
C) Statute of liberty.
D) Statute of frauds. - Answer -A) Statute of limitations.
An employer can be held legally liable for the negligent acts of their employee while the
employee is in the course and scope of their employment. This is an example of what
theory of liability?
A) Joint and several liability.
B) Vicarious liability.
C) Absolute liability.
D) Strict liability. - Answer -B) Vicarious liability.
Compensatory damages include which of the following?
A) Special damages.
B) General damages.
C) Punitive damages.
D) A & B only.
E) A, B & C. - Answer -D) A & B only.
Punitive damages are intended to achieve which of the following objective(s)?
A) Compensate the victim for their economic and non-economic damages
B) Punish the individual or organization responsible for the plaintiff's injuries
C) To deter the plaintiff (and others) from engaging in similar willful misconduct in the
future.
D) B & C only
E) A, B & C - Answer -D) B & C only
Examples of special damages include all of the following EXCEPT:
A) The cost to repair a damaged car.
, B) Lost wages.
C) Disfigurement due to permanent scarring.
D) Medical bills. - Answer -C) Disfigurement due to permanent scarring.
Which of the following statement(s) is/are true concerning Hold
Harmless/Indemnification Agreements?
A) Defined as liability that arises by way of negligence.
B) The two parties to this type of arrangement are the bailor and bailee.
C) It is a common business practice for one party to contractually assume responsibility
for liability of another.
D) Assuming responsibility for the liability of another is a fairly low risk activity that only
minimally increases exposure to loss. - Answer -C) It is a common business practice for
one party to contractually assume responsibility for liability of another.
Which of the following can be a named insured for the CGL Coverage Form (select all
that apply)?
A) An individual
B) A Joint Venture
C) A Limited Liability Corporation
D) The spouse of an individual named insured - Answer -All apply
Which of the following statements is/are true?
I. The most commonly utilized CGL Coverage Form provides coverage on a claims-
made basis.
II. The retroactive reporting date for a claims-made CGL Coverage Form can be the
policy's inception date or a date earlier than the policy inception date.
A) I only
B) II only
C) Both I & II
D) Neither I nor II - Answer -B) II only
All of the following statements concerning mobile equipment and the CGL are true
EXCEPT:
A) Coverage for mobile equipment is generally provided by the CGL.
B) Liability coverage for mobile equipment under Coverage A of the CGL is only
excluded under two specific circumstances.
C) The CGL provides coverage for property damage liability arising out of the use of
mobile equipment in a prearranged race.
D) The CGL defines mobile equipment to include vehicles that travel on crawler treads.
- Answer -C) The CGL provides coverage for property damage liability arising out of the
use of mobile equipment in a prearranged race.
Which of the following is an element of negligence that must be present in order to
successfully establish negligence against an individual or organization?
A) Legal duty owed.
B) Breach of legal duty.
C) Proximate cause.
D) Damages.
E) All of the above. - Answer -E) All of the above.
Tom and Jerry go to a bar together to watch the Super Bowl. They drink six craft beers
each during the game. At the end of the game, Tom offers to drive Jerry home. Despite
having both the Uber and Lyft apps on his smart phone, Jerry accepts Tom's offer of a
ride home. A short time after leaving the bar, an intoxicated Tom drives off the road and
hits a tree. Jerry suffers a broken right ankle and facial abrasions as a result of the
passenger side airbag deploying.
Jerry retains an attorney and files suit against Tom for bodily injuries sustained as a
result of Tom's negligence. What is Tom's best legal defense to Jerry's bodily injury
lawsuit?
A) Jerry had the last clear chance to avoid getting injured
B) Jerry assumed the risk of accepting a ride home from an intoxicated Tom
C) A bailor-bailee relationship existed between Tom and Jerry
D) Jerry violated the state's Dram Shop Act by drinking beer for several hours - Answer
-B) Jerry assumed the risk of accepting a ride home from an intoxicated Tom
Barbara and Jennifer are both driving eastbound on Gaines Street in separate vehicles
on their way to Doak Campbell Stadium to watch the FSU v. Miami game. Barbara's
vehicle is directly in front of Jennifer's car. Barbara comes to complete stop at a red
light; unfortunately, Jennifer wasn't maintaining a proper lookout and tapped the rear
bumper of Barbara's Honda Accord with the front bumper of her Toyota Camry. Since it
was a very minor accident and both drivers agreed neither vehicle was damaged as a
result of this accident, Barbara and Jennifer didn't call the police and headed to the
football game.
Two months later, Jennifer was surprised to learn she had been sued by Barbara as a
result of this very minor impact auto accident that resulted in no damage to either
vehicle. Jennifer's best chance to get this case dismissed is to argue Barbara is unable
to prove this required element of a negligence cause of action - Answer -C) Barbara's
vehicle didn't sustain any damage as a result of Jennifer's negligence
Tom and Jerry are next door neighbors. One night, a tornado touched down in their
neighborhood causing a tree on Tom's property to fall onto the roof of Jerry's home.
,Jerry files suit against Tom for the damage to Jerry's home caused by Tom's fallen tree.
What is Tom's best defense to the lawsuit filed by Jerry?
A) Contributory negligence.
B) Comparative negligence.
C) Assumption of risk.
D) Act of God/Nature. - Answer -D) Act of God/Nature.
What is the legal concept that limits the amount of time a plaintiff has to initiate a lawsuit
for negligence against a person the plaintiff contends caused the plaintiff's
injuries/damages?
A) Statute of limitations.
B) Statute of perpetuities.
C) Statute of liberty.
D) Statute of frauds. - Answer -A) Statute of limitations.
An employer can be held legally liable for the negligent acts of their employee while the
employee is in the course and scope of their employment. This is an example of what
theory of liability?
A) Joint and several liability.
B) Vicarious liability.
C) Absolute liability.
D) Strict liability. - Answer -B) Vicarious liability.
Compensatory damages include which of the following?
A) Special damages.
B) General damages.
C) Punitive damages.
D) A & B only.
E) A, B & C. - Answer -D) A & B only.
Punitive damages are intended to achieve which of the following objective(s)?
A) Compensate the victim for their economic and non-economic damages
B) Punish the individual or organization responsible for the plaintiff's injuries
C) To deter the plaintiff (and others) from engaging in similar willful misconduct in the
future.
D) B & C only
E) A, B & C - Answer -D) B & C only
Examples of special damages include all of the following EXCEPT:
A) The cost to repair a damaged car.
, B) Lost wages.
C) Disfigurement due to permanent scarring.
D) Medical bills. - Answer -C) Disfigurement due to permanent scarring.
Which of the following statement(s) is/are true concerning Hold
Harmless/Indemnification Agreements?
A) Defined as liability that arises by way of negligence.
B) The two parties to this type of arrangement are the bailor and bailee.
C) It is a common business practice for one party to contractually assume responsibility
for liability of another.
D) Assuming responsibility for the liability of another is a fairly low risk activity that only
minimally increases exposure to loss. - Answer -C) It is a common business practice for
one party to contractually assume responsibility for liability of another.
Which of the following can be a named insured for the CGL Coverage Form (select all
that apply)?
A) An individual
B) A Joint Venture
C) A Limited Liability Corporation
D) The spouse of an individual named insured - Answer -All apply
Which of the following statements is/are true?
I. The most commonly utilized CGL Coverage Form provides coverage on a claims-
made basis.
II. The retroactive reporting date for a claims-made CGL Coverage Form can be the
policy's inception date or a date earlier than the policy inception date.
A) I only
B) II only
C) Both I & II
D) Neither I nor II - Answer -B) II only
All of the following statements concerning mobile equipment and the CGL are true
EXCEPT:
A) Coverage for mobile equipment is generally provided by the CGL.
B) Liability coverage for mobile equipment under Coverage A of the CGL is only
excluded under two specific circumstances.
C) The CGL provides coverage for property damage liability arising out of the use of
mobile equipment in a prearranged race.
D) The CGL defines mobile equipment to include vehicles that travel on crawler treads.
- Answer -C) The CGL provides coverage for property damage liability arising out of the
use of mobile equipment in a prearranged race.
