AIC 301 - final exam prep questions Latest

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A product has been making people ill, and a number of the victims have filed a class- action lawsuit against its manufacturer. Which one of the following sets of elements would the trial court consider to certify this as a class action suit?

Select one:

• Commonality, numerosity, adequacy of representation, typicality
• Numerosity, commonality, typicality, amount of damages
• Amount of damages, adequacy of representation, commonality, typicality
• Adequacy of representation, numerosity, commonality, amount of damages -

CORRECT ANSWER: A. Commonality, numerosity, adequacy of representation,

typicality

A restaurant manager created a new method to cook French fries. Which one of the following describes how the restaurant manager can protect his intellectual property rights?

Select one:

• By registering a trade secret with the state.
• By claiming part ownership in the restaurant
• By obtaining a patent

D. By filing a copyright notice - CORRECT ANSWER: C. By obtaining a patent. The

restaurant manager can protect his intellectual property rights by obtaining a patent. A patent applies to a new, useful, nonobvious invention.

A special characteristic of an insurance policy is that it is a nontransferable contract.This principle means that insureds may not transfer or assign their insurance policies

Select one:

• Under any circumstances. 1 / 3

• Except when directed to do so by the insurer.
• Unless the insurer agrees to the assignment.

D. Except at expiration of the policy. - CORRECT ANSWER: C. Unless the insurer

agrees to the assignment.

Aaron and Harry entered into a contract in which Aaron agreed to pay Harry to supply him with lumber for $10,000 per load. When the cost of lumber increased, Harry renegotiated his contract with Aaron and wrote the new terms of $12,000 per load on the contract by hand. When there was a contract dispute and the case went to court, the judge

Select one:

• Recognized the handwritten numbers over the words.
• Enforced the original printed version of the contract.
• Recognized the handwritten words over the words.

D. Voided the contract because it had been written on. - CORRECT ANSWER: C.

Recognized the handwritten words over the words.

All of the following debts are not dischargeable in bankruptcy, EXCEPT:

Select one:

• Services obtained by fraud
• Most student loans
• Payments owed on leases

D. Alimony - CORRECT ANSWER: C. Payments owed on leases

Antonia was a life tenant who occupied a house at 33 Main Street. Emil had a remainder interest in the property and planned to occupy it after Antonia's death.Antonia obtained property insurance covering the house, through Richley Insurance Co.The house was destroyed by fire during Antonia's life estate. Richley must pay the insurance policy proceeds to

Select one:

• Emil, under the doctrine of equitable conversion.
• Antonia, since she occupied the house at the time of the fire. 2 / 3

• Antonia, because life tenants can recover the entire value of the property that they

insure.

• Emil, because he will ultimately own the property. - CORRECT ANSWER: C. Antonia,

because life tenants can recover the entire value of the property that they insure.

Argot Mutual drafts the wording of its insurance contracts. Because Argot determines the exact wording of the contract, the insureds have no choice but to either accept the policy wording as is, or purchase insurance elsewhere. Therefore, Argot's policy is considered to be a

Select one:

• Contract of adhesion.
• Conditional contract.
• Contract of indemnity.

D. Contract of good faith. - CORRECT ANSWER: A. Contract of adhesion.

As an insurance legal professional, Mehmet understands the importance of representations and warranties in insurance policies. He knows that

Select one:

• Representations are written in the policy or incorporated by reference, while

warranties can be oral or written.

• The law presumes representations to be material while warranties must be proved to

be material.

• Representations require strict compliance, while warranties require substantial truth.
• Representations are indirect inducements to the contract, while warranties are part of

the final insurance contract. - CORRECT ANSWER: D. Representations are indirect

inducements to the contract, while warranties are part of the final insurance contract.

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 have a silent alarm, Blithe should draft its application and policy so that the customer's application statement about whether it has a silent alarm would be

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