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Which one of the following best explains how a successful litigant enforces an arbitration award? Select one: A. An arbitrator's award is filed with the appropriate court and is as enforceable as any court judgment. B. The winning party can take the arbitrator's award directly to a sheriff to mandate compliance with the decision. C. The parties participating in the arbitration agree in a contract to comply with the arbitrator's decision. D. An arbitrator cannot award money, but the decision can be used as persuasive evidence in a real court.

A. An arbitrator's award is filed with the appropriate court and is as enforceable as any court judgment.

The type of contract that is an obligation imposed by law because of the parties' conduct or some special relationship between them or because one of them would otherwise be unjustly enriched is a quasi-contract also known as Select one: A. An implied-in-law contract. B. An executory contract. C. An implied-in-fact contract. D. A voidable contract.

A. An implied-in-law contract. Is not an actual contract but is imposed by law for a variety of reasons. The type of contract that has not been completely performed by one or both of the parties is an executory contract. The implied-in-law contract is not voidable since it is not a contract. An implied-in-fact contract is one that is presumably intended.

Nancy suffered a loss and contacted her insurer, Autumn Co. Autumn Co. sent a nonwaiver agreement to Nancy's workplace, but she refused to sign. Autumn Co. then attempted to send a reservation of rights letter to Nancy's residence, but it accidentally sent the letter to the wrong address. Autumn Co. also sent a letter to Nancy's boyfriend, a third-party claimant, at his workplace. This jurisdiction did not require insurers to send reservation of rights letters to third-party claimants. Which one of the following correctly identifies whether Autumn Co. has effectively protected its rights? Select one: A. Autumn Co. has not effectively protected its rights because it cannot show that it communicated notice to the insured. B. Autumn Co. has effectively protected its rights because it acted in good faith and made every reasonable effort to contact the insured. C. Autumn Co. has effectively protected its rights because Na

A. Autumn Co. has not effectively protected its rights because it cannot show that it communicated notice to the insured. Had it sent the letter to the right address, it could have had a return receipt, and if by regular mail as well, a presumption of receipt.

Amy was severely injured in an accident with a tractor trailer. She lived for two weeks following the accident amassing $200,000 of medical bills and other expenses related to the accident. It is likely that a lawsuit, under survival statutes, the $200,000 of damages will Select one: A. Be awarded in order to recover damages Amy sustained between the time of her injuries and the time of her death. B. Not be awarded since she survived the accident for more than 10 days. C. Not be awarded since Amy's death was not instantaneous. D. Be awarded but only as the damages relate to Amy's medical expenses and not for other expenses.

A. Be awarded in order to recover damages Amy sustained between the time of her injuries and the time of her death. It is likely that in a lawsuit, under survival statutes, the $200,000 of damages will be awarded in order to recover damages Amy sustained between the time of her injuries and the time of her death.

Matt was an insurance applicant. Matt included untrue information on his application for insurance and the insurer agreed to insure Matt based on this false information. Which one of the following special characteristics of insurance contracts will provide Matt's insurer a basis to deny coverage under Matt's policy? Select one: A. Contract of utmost good faith B. Contract of indemnity C. Contract of adhesion D. Conditional contract

A. Contract of utmost good faith This special characteristic imposes the obligation of all parties to the insurance contract to act in complete honesty and to disclose all relevant facts. An insurer may be released from its insurance policy obligations due to misrepresentation or concealment by the insured. The conditional contract doctrine reflects that the parties to the insurance contract must perform only under certain conditions. The contract of adhesion doctrine reflects the fact that the insurer drafts the insurance policy so ambiguous that policy provisions should be resolved in the insured's favor. The contract of indemnity doctrine states that in the event of a covered loss, the insurer will pay an amount directly related to the amount of loss.

During her closing arguments for the defense, attorney Gabriela noticed that several of the jurors were sleeping. Irritated, Gabriela began insulting the jurors and using vulgar language. The jurors woke up and began to argue and throw things at Gabriela, the judge, and other people in the court. The judge was appalled by Gabriela's lack of professionalism and ordered her to pay a fine while he considered how to handle the situation. Gabriela refused to pay the fine. Which one of the following actions would be appropriate for the judge to take? Select one: A. Declare a mistrial, because an extraordinary event has made the jury incapable of delivering an unbiased verdict. B. Declare a nonsuit, because Gabriela did not comply with a court order. C. Issue a special verdict and find against the defense to punish Gabriela. D. Issue a directed verdict, because the jury was misbehaving during the trial.

A. Declare a mistrial, because an extraordinary event has made the jury incapable of delivering an unbiased verdict. A mistrial is a tool a judge can use to take the fact-finding out of the hands of the jury in extreme situations.

Oscar rented a home to Jayne who got so far behind on rent payments, he told her she was going to be evicted and that she needed to move out. Jayne made no attempts to give up the home, so Oscar seized her possessions and held them for rent. This process is known as a Select one: A. Distraint. B. Silent eviction. C. Constructive eviction. D. Self-help eviction.

A. Distraint. Constructive eviction occurs when actions or inactions of a landlord prevent the tenant from enjoying a substantial or integral part of the premises. Distraint occurs when a landlord exercises the right to seize tenant's property and hold it for rent when the tenant has defaulted on rent.

Which one of the following legal doctrines would most effectively provide a defense against a party who asserts a legal remedy when that party had previously chosen another, inconsistent, legal remedy? Select one: A. Election B. Waiver C. Misrepresentation D. Estoppel

A. Election Election is the voluntary act of choosing between two alternative rights or privileges. The choice of one, for example a legal remedy, can imply relinquishment of the one not chosen—especially if they are inconsistent.

Beatrice decided to purchase a condominium rather than lease an apartment. After two years, she wanted to mortgage the condominium rather than sell the unit. In this situation, Beatrice Select one: A. Has a direct property interest in the condominium and may mortgage it. B. May not mortgage the condominium but must offer to sell her condominium shares first to other owners in the association. C. Is not a tenant in common and her interest is expressed according to the condominium association's bylaws. D. Has only an individual interest in the condominium and may sell it but she does not have sufficient property rights to mortgage the condominium to another party.

A. Has a direct property interest in the condominium and may mortgage it. Under condominium ownership there is individual ownership of a unit. There is also undivided interest in common or public areas that serve all individual units. All unit owners have interests as tenants in common.

Benny sold his copy shop to Yolanda and promised not to compete with her in a specific area for six months. Benny breached the provision and began to compete with Yolanda's business only two months later. Which one of the following actions would be most appropriate as an equitable remedy for Yolanda? Select one: A. Injunction B. Specific performance C. Contract price D. Damages

A. Injunction An injunction would require Benny to refrain from competing with Yolanda.

Which one of the following statements applies when comparing libel and slander? Select one: A. Libel has wider circulation and is more permanent than slander. B. The defenses for libel and slander are different. C. The potential for damage to a person's reputation by slander is greater than libel. D. Slander has more potential for malicious behavior.

A. Libel has wider circulation and is more permanent than slander. Libel can therefore cause greater damage to a person's reputation than slander.

Which one of the following is a category of the tort of nuisance? Select one: A. Nuisance per se B. Nuisance invasion C. Unlawful nuisance D. Nuisance discomfort

A. Nuisance per se Is an act, occupation, or structure that is a nuisance at all times and under any conditions, regardless of location or surroundings. Other categories are private nuisance, public nuisance, or intentional nuisance.

Gilda hired artist Lance to restore an expensive painting for $1,000. After working on the painting, Lance decided the job was too labor intensive and demanded $3,000. Gilda sued Lance for breach of contract. A court is most likely to Select one: A. Require specific performance. B. Award damages. C. Grant an injunction. D. Mandate a contract novation.

A. Require specific performance. Specific performance is a court-ordered equitable remedy requiring precise fulfillment of a contractual obligation when money damages are inappropriate or inadequate. Damages, a contract novation or an injunction will not help Gilda remedy the breach or achieve her initial goals. However, specific performance would require Lance to finish the job.

Which one of the following is a notice sent by an insurer advising the insured that the insurer will continue with a claim investigation but that the insurer retains the right to deny coverage later? Select one: A. Reservation of rights letter B. Justified refusal notice C. Notice of election D. Nonwaiver agreement

A. Reservation of rights letter This is the definition of a reservation of rights letter. A nonwaiver agreement is a written contract in which the insured and the insurer agree that neither will waive any rights under the policy as a result of the investigation or defense of a lawsuit against the insured. Justified refusal notice and notice of election are not terms that describe this.

In January, Sue verbally agrees to sell one of two her houses to Scott for $250,000 before the end of the year. In November, Scott asks Sue for a written contract and receives a signed handwritten note restating their prior verbal agreement, but it does not say which house is being sold. Is this an enforceable contract? Select one: A. Yes, because it reflects the essential elements of a contract. B. No, because it is missing critical terms of a real estate transaction. C. No, because the statute of frauds conditions are not met. D. Yes, because it conforms to the parol evidence rule.

A. Yes, because it reflects the essential elements of a contract. Yes, this is an enforceable contract because it reflects the essential elements of a contract. Oral evidence is always admissible to help interpret or explain a written agreement, but not to alter its terms. (Even though "parol" means "oral," the parol evidence rule applies to all forms of extrinsic evidence, not just oral evidence.)

Benjamin owned a house which was rented by Katie. Benjamin rerouted the gutters and downspouts to trickle water into the road rather than on the porch. In the winter the water froze and created a nearly invisible sheet of ice on the road. Can Benjamin and/or Katie be held responsible if someone is injured on the ice? Select one: A. Yes. Benjamin created a nuisance, and he can be liable for discharging water on the road, but Katie is not. B. No, Benjamin is not responsible as it is a negligent artificial condition, but only Katie is liable, as the possessor of the land. C. No, it is a natural condition, and neither he nor Katie are liable for the flow of natural waters onto roads. D. Yes. Benjamin created a hidden danger, and he has a duty to warn of the hazard, but Katie has no duty.

A. Yes. Benjamin created a nuisance, and he can be liable for discharging water on the road, but Katie is not. Alterations in land can create a nuisance, including concentrating the flow of water discharges on adjoining land.

Which one of the following is a purpose served by a bill of lading? Select one: A. An invoice from the consignor to the consignee B. A receipt of goods by the carrier for delivery C. A negotiable instrument, used to represent the value of goods in storage D. A written order to deliver goods to a warehouse operator

B. A receipt of goods by the carrier for delivery UCC Article 7 as adopted by each state regulates bills of lading for goods shipped within the boundaries of the individual states. When shipments cross state boundaries, they also become subject to federal government regulation under the Interstate Commerce Act.

All of the following are either complete or partial defenses in a products liability lawsuit, EXCEPT: Select one: A. Misuse B. Breach of warranty C. Alteration D. State-of-the-art

B. Breach of warranty Is a theory of liability, while the others are products liability defenses.

Some bailment contracts require compensation. When expressed or implied compensation is not paid, the bailee Select one: A. Can use the property for purposes that were not contemplated by the bailment contract for as long as the debt remains unpaid. B. Can assert a lien or even a possessory lien until the compensation is paid. C. May sell the property after issuing notice of nonpayment to the bailor and waiting a reasonable amount of time. D. Must return the property to the bailor and seek restitution for the debt through litigation.

B. Can assert a lien or even a possessory lien until the compensation is paid. When expressed or implied compensation is not paid, the bailee can assert a lien or even a possessory lien until the compensation is paid. For ex., an auto repair shop can keep a car until the owner pays the repair bill.

Colson makes knives and swords as a hobby selling his products on a non-advertised basis. He does not package his products but does provide a warranty against defects. If a parent whose child is injured by one of Colson's ever-sharp knives sues Colson under strict liability, which one of the following statements may be true? Select one: A. Knives are generally known to be dangerous instrumentalities and Colson could not be held liable. B. Colson would be strictly liable only if the knife was unreasonably dangerous in normal use. C. Colson would be liable because of failure to warn that the knife was sharp and dangerous. D. Colson is not liable for harm to a third party.

B. Colson would be strictly liable only if the knife was unreasonably dangerous in normal use. In a strict liability lawsuit, Colson would be strictly liable only if the knife was unreasonably dangerous in normal use. Negligence and harm to a third party are not factors. Knives are known to be dangerous therefore only if the knife was unreasonably dangerous when used under normal conditions would strict liability apply.

Contracts subject to the statute of frauds include Select one: A. Contracts that can be performed within one year and contracts to pay one's own debt. B. Contracts for the sale of an interest in land and contracts for the sale of personal property for at least $500. C. Contracts for the sale of land and contracts for the sale of goods between merchants. D. Oral promises to pay debts against a decedent's estate and contracts for the sale of land.

B. Contracts for the sale of an interest in land and contracts for the sale of personal property for at least $500. Plus agreements that cannot be performed within one year, agreements to pay a debt owed by another person, and agreements in which an executor of an estate promises to pay estate debts from personal funds.

Which one of the following would be considered material evidence in a trial involving a house burglary? Select one: A. The homeowner was out of town at the time B. Fingerprints on a broken window C. Dirty dishes in the kitchen sink D. The homeowners policy included a jewelry rider

B. Fingerprints on a broken window Would be considered material evidence. If the fingerprints can be identified, they could have legal significance.

In a contract for 1,000 loaves of bread, grocer Andy wrote out the words "one thousand" but typed in the number 100. The supplier delivered 100 loaves which resulted in a loss of a major customer. Which one of the following priorities will apply in this case? Select one: A. Printing prevails over handwriting. B. Handwriting prevails over typewriting. C. Figures prevail over words. D. Words prevail over printing.

B. Handwriting prevails over typewriting. When the parties have made typewritten or handwritten changes in a printed contract form, the courts apply the rule that handwriting prevails over typewriting as the first priority. This is a typographical error and therefore handwriting will prevail over typewriting.

Buyer Cecil contracted with seller Liza to deliver 25, 1,000-piece puzzles by January 10 for a community contest to be held on January 11. Liza did not deliver the puzzles until January 12. If Cecil sues Liza, it is likely that Liza's failure to deliver by January 10, Select one: A. Will require court-ordered substantial performance. B. Is a breach of contract. C. Could result in the contract being rescinded by Cecil. D. Will result in contract novation.

B. Is a breach of contract. Delivery on the due date is a necessary condition to recovery since time was of the essence. The late delivery decreased or negated Cecil's benefit and therefore the stated delivery time was a necessary condition. It is likely that Liza breached the contract.

Cian purchased a house with money loaned to him by Keithly Mortgage Co. (KMC). Cian obtained a homeowner policy from Melfor Insurance—containing a standard mortgage clause—which covered the house for damage due to windstorm. A windstorm destroyed Cian's house three years later. Which one of the following correctly states who is entitled to the proceeds payable under Cian's homeowner policy? Select one: A. KMC, under the doctrine of equitable conversion B. KMC, as its interests appear. C. KMC, because the policy was solely for its benefit D. Cian, because the policy was solely for his benefit

B. KMC, as its interests appear. Under the standard mortgage clause, insurance policy proceeds are payable to the mortgagee "as the mortgagee's interests may appear." Thus, KMC would receive the proceeds up to the amount of its loan and Cian would receive any remaining amount.

In negligence, judges and jurors must weigh presumptions, facts, and the common law in order to determine the correct outcome for a particular case. Which one of the following best describes how a court will usually deal with a case when the facts are undisputed and point to only one presumption? Select one: A. The court must make findings of fact to determine whether negligence occurred. B. The court must decide whether, as a matter of law, negligence occurred. C. When the facts are undisputed, the court will always dismiss the case. D. When the facts point to only one presumption, the court must make findings of law to determine which party committed negligence per se.

B. The court must decide whether, as a matter of law, negligence occurred. If the facts are undisputed and point to only one inference. If the facts are in dispute or uncertain, or even if they are undisputed, but are such that fair-minded persons might reasonably reach different conclusions, then the court must decide whether negligence occurred.

Georgia just moved from one state to another and contacted an insurance agent for homeowners coverage. She told her agent that she previously had full coverage and she wanted the same coverage on her new home and contents. The agent assured her she would have full coverage and issued Georgia a binder with a note on it saying "full coverage as in previous state." A year later, Georgia's home experienced water damage and she was denied coverage because she did not have a back-up of sewer and drain endorsement that she had on her previous policy. If Georgia sues her insurer, it is likely Select one: A. That the meaning of the binder cannot be determined even by application of all the rules of interpretation under UCC provisions. B. The courts will interpret the binder note in Georgia's favor because of ambiguous wording of full coverage and her intent to have the same coverage as she had in her prior state. C. She will

B. The courts will interpret the binder note in Georgia's favor because of ambiguous wording of full coverage and her intent to have the same coverage as she had in her prior state. The courts will allow admission of the binder and will most likely interpret the binder note in Georgia's favor because of the agent's ambiguous wording of full coverage and because of Georgia's intent to have the same coverage as she had in her prior state. Georgia thought she had the same coverage which would have included the endorsement and she will be allowed to submit the binder for contract interpretation purposes.

Which one of the following statements is true regarding hazardous activities? Select one: A. A passerby who is injured forfeits a right to recover damages caused by a blast because the injured person knew explosives were stored on the property. B. The storage and transportation of explosive substances is an ultrahazardous activity. C. The occupiers of adjacent property are required to refrain from using their property as they please because of an ultrahazardous activity nearby. D. States no longer consider aviation as an ultrahazardous activity since it has become so commonplace as to present no unusual danger.

B. The storage and transportation of explosive substances is an ultrahazardous activity. A use or activity is ultrahazardous (abnormally dangerous) if: it has a high degree of risk of serious harm; it cannot be performed without the high degree of risk; and it does not normally occur in the area in which it is conducted.

Betty Lou, who owes Hillary $300, sells a gem necklace to Jennifer for $600. Betty Lou receives $300 in cash and Jennifer's promise to pay $300 to Hillary to discharge Betty Lou's debt to Hillary. In this situation, Hillary is best described as Select one: A. A donee beneficiary. B. An incidental beneficiary. C. A creditor beneficiary. D. An intended beneficiary.

C. A creditor beneficiary. Hillary is a creditor beneficiary which is a third-party beneficiary who is owed a debt that is to be satisfied by performance of a contract.

Which one of the following is considered a fixture? Select one: A. A free standing cabinet owned by a tenant B. A framed painting on canvas hung on a wall C. A door D. Wallpaper

C. A door If an article is installed on, attached to, or used with land or buildings in such a way as to become real property themselves, the article is a fixture.

Luis visited his insurance agent, Katarina. Luis told Katarina that he was interested in obtaining a homeowners policy. Katarina responded that she could help arrange homeowners insurance for Luis, and she then explained the application process. Katarina's statements were Select one: A. An offer. B. A counteroffer. C. A solicitation of an offer. D. An acceptance.

C. A solicitation of an offer. Generally, a producer's selling efforts are merely a solicitation of offers that the insurer might not accept and are not offers themselves. The insurance application, signed by the applicant and sent to the insurer, is the offer.

Agencies often have investigatory and prosecutorial duties. Which one of the following best explains how the Fourth Amendment protection against unreasonable searches and seizures limits the power of administrative agencies to demand the production of records? Select one: A. Agencies cannot require an individual to produce records that may incriminate that individual. B. Agencies may only contribute to investigations by giving advice and information to the police. C. Agencies must show that the records they demand are somehow relevant to the investigation. D. Agencies are not permitted to demand records without permission from the governor or President.

C. Agencies must show that the records they demand are somehow relevant to the investigation. Records demanded by agencies must be relevant to the investigation. However, the connection between the requested records and the subject of the investigation can be slight.

Ian, Isaac, and Ann each own car repair shops. They are defendants in a lawsuit alleging that they were cheating customers and causing vehicle engine problems by utilizing very specific processes in their service shops. The plaintiff, Nick, is accusing all three defendants since it is unclear which of the defendants actually caused the problems with Nick's vehicle. Ian, Isaac and Ann must each prove that he or she did not cause the harm or that someone else did. This concept is known as Select one: A. Concert of action. B. Conspiracy. C. Alternative liability. D. Industry-wide liability.

C. Alternative liability. This is an example of alternative liability where it is not clear which party is at fault and each party must prove they were not the party causing the harm or they must prove that some other party caused the harm.

Nicolas applied for a homeowners policy with Etchley Insurance. Etchley's application asked if Nicholas' home had smoke detectors and he answered that it did. Etchley issued the policy and two years later, Nicholas' home was severely damaged by fire. During its claim investigation, Etchley discovered that although Nicholas did have smoke detectors in his home, they were not working at the time of the fire. If a court were to interpret Nicholas' application statement as a warranty, the court would most likely find it to be Select one: A. A continuing warranty. B. An implied warranty. C. An affirmative warranty. D. A promissory warranty.

C. An affirmative warranty. Affirmative warranties state that specific facts exist at the time the contract forms. Affirmative warranties are less strict that continuing or promissory warranties, so courts will interpret warranties as affirmative unless policy language clearly provides otherwise. Implied warranties are obligations courts impose on sellers to warrant certain facts about their products.

Ida desperately needed to purchase homeowners insurance on her newly purchased dwelling. When she talked with Grace, an agent with Jancy's Insurance Company, Ida lied on the application when she denied having previous total fire losses. She also told Grace she had not had any previous total fire losses. Ida had recently been declined by three other companies for having previous total fire losses that were caused by physical hazards under Ida's control. The type of behavior that Ida has exhibited is called Select one: A. Avoidance. B. Nondisclosure. C. Concealment. D. Collusion.

C. Concealment. In insurance the technical term for misrepresentation silence is concealment.

Tommy has recurring nightmares about an auto accident in which he was injured. Two years ago he was subjected to several reconstructive surgeries leaving him with phantom pains due to the loss of one of his legs. Tommy's highly unpleasant mental reactions may indicate an additional award based on Select one: A. Pain and suffering damages. B. Special damages. C. Emotional distress damages. D. Punitive damages.

C. Emotional distress damages. Highly unpleasant mental reactions are difficult to objectively evaluate. Courts awarding damages for emotional distress award the damages as general damages. Special damages are actual damages that can be more easily and objectively evaluated. Tommy's injuries are indicative of emotional distress and would be awarded as general (not punitive) damages.

Georgia applied for a homeowner policy with Insurance Company (IC). IC's application asked if Georgia's home had an alarm system and Georgia answered that it did. IC issued the policy to Georgia. Two months later, burglars entered Georgia's house and stole several personal property items. At that time, IC discovered that Georgia's home did not have an alarm system. If Georgia's application statement about the alarm were determined to be a warranty Select one: A. IC could not avoid Georgia's policy, unless Georgia's statement constituted fraud. B. IC could avoid Georgia's policy, if the statement was material. C. IC could avoid Georgia's policy, whether or not the statement was material. D. IC could not avoid Georgia's policy due to this statement, under any circumstances.

C. IC could avoid Georgia's policy, whether or not the statement was material. In insurance contract law, warranties are statements or promises that if untrue would render the policy voidable, whether or not they are material. If Georgia's statement were a warranty, Argot could avoid her policy without a showing of materiality.

Which one of the following statements correctly describes the effect of an agent's oral promise—made before or during the finalizing of a policy—to waive an insured's future breach of any policy condition? Select one: A. It is ineffective because oral statements cannot result in a waiver B. It is effective as a waiver due to the parol evidence rule C. It is ineffective due to the parol evidence rule D. It is effective as a waiver due to the doctrine of election

C. It is ineffective due to the parol evidence rule The parol evidence rule provides that oral evidence of agreements preceding or accompanying a written insurance policy cannot be used to prove a waiver. Thus, the agent's oral statements made at this time would not be admitted into evidence and thus would be ineffective as a waiver.

Carolina, a lessee, leased business property from Millwright Property Management (MPM), a lessor. MPM had fire insurance through Pravalt Insurance Co. Carolina negligently caused a fire loss to the premises and Pravalt paid MPM for this loss. Pravalt then made a subrogation claim against Carolina. Carolina will have to reimburse Pravalt with her own funds, if Select one: A. Carolina had purchased a separate fire policy covering the leased premises. B. The lease placed all risks of loss on MPM. C. Pravalt did not waive its subrogation rights against Carolina and she did not have separate insurance. D. Carolina was included as an additional insured on MPM's policy.

C. Pravalt did not waive its subrogation rights against Carolina and she did not have separate insurance. Lessees can seek protection from subrogation by the landlord's insurer through la lease provision that makes the lessor financially responsible to pay for damage to the property, being named an additional insured on the landlord's policy, purchasing separate insurance, or by the insurer waiving subrogation.

Nicolas rented a vacation house to Carolina. Tania visited Carolina and an earthquake struck the vacation house. Tania was injured by falling debris. Generally, which one of the following is correct concerning whether Tania has a tort claim against Nicolas or Carolina? Select one: A. Tania has a claim against Carolina but not Nicolas, because Carolina had a duty to warn visitors of all dangers present on or inherent in the property. B. Tania has a claim against Nicolas but not Carolina, because only landowners are liable for injuries caused by natural conditions of the land. C. Tania has no claim because neither the landowner nor the possessor has a duty to protect the public from natural conditions of the land. D. Tania has a claim against Carolina but not Nicolas, because only the possessor of property can be liable for injuries to third parties that occurred on the possessed land.

C. Tania has no claim because neither the landowner nor the possessor has a duty to protect the public from natural conditions of the land. In general, a landowner is not liable for natural conditions on the land that can cause injury either on or off the land. There are exceptions for trees, where the duty is greater in urban areas than in rural areas.

Grace was looking for a long-term personal hairstylist. Emily was actually an expert in men's hair and had no female clients. When Grace called, Emily thought Grace said her name was "Grant," and she assumed that Grace was a man. Emily truthfully told Grace that she was a renowned specialist and would be happy to enter into a long-term professional relationship. Grace asked Emily if she had experience working with clients who preferred especially short hair. Emily told Grace that she had, but Emily was referring to her male clients, and had never worked with short female hairstyles. Emily and Grace worked out the details of exclusive monthly haircuts without learning of their miscommunication. Which one of the following most accurately explains whether this contract is enforceable against both parties? Select one: A. The contract is voidable either party, due to Emily's unilateral mistake about Grace's gender. B. The

C. The contract is voidable by Grace, due to Emily's innocent misrepresentations. It is not a bilateral mistake because both parties are not making the same mistake.

Jill's mother, Amy, contracted with Pete to sell him some lawn equipment for $600. Jill needed $200 for college textbooks so Amy asked Pete to give Jill $200 of the $600 he owed to her. Amy received $400 and Jill received $200. In this situation Jill is the Select one: A. Promisor. B. Unintended donee. C. Third-party beneficiary. D. Promisee.

C. Third-party beneficiary. The contract is between Amy and Pete.

Cliff has title to a three acre plot of land which is surrounded by a creek. There is a barn with shovels, saddles, and other contents. There is also a well on Cliff's property. The highest property right acquired by Cliff is the Select one: A. Ownership of the creek and its mineral rights. B. Possession of the land and the barn. C. Title to the property. D. Intellectual property associated with the real property.

C. Title to the property. The title denotes legal ownership of the property which is the highest right to property that a person can acquire. Mere possession of the land and the barn is not the highest property right. Ownership of the land is more important than ownership of the creek. Intellectual property generally relates to property created from one's own efforts.

Three-year-old Eddie unlatched the gate of a neighbor's chicken coop and all the chickens ran away. Eddie's parents refused to pay the neighbor the $300 requested for the loss of the chickens. If the neighbor sues Eddie alone, which one of the following concepts will be most significant? Select one: A. Absolute liability B. Negligent entrustment C. Tortfeasor's capacity D. Outrageous conduct

C. Tortfeasor's capacity In this situation the court will be most concerned with Eddie's mental capacity and whether he was capable of understanding or being responsible for the loss of the chickens.

Martin visited his insurance agent Laura to discuss his insurance needs. Laura recommended that Martin purchase a businessowners policy and Martin agreed with Laura's recommendation. Laura helped Martin complete an insurance application and she sent the completed and signed application to Blythe Insurance Co., along with Martin's premium payment check. Blithe cashed Martin's check, issued the policy, and mailed the policy to Martin. Blythe's actions were Select one: A. A solicitation of an offer. B. An offer. C. A counteroffer. D. An acceptance.

D. An acceptance. Martin made an offer when Laura sent Blythe Martin's signed application with payment of premium. Blythe accepted Martin's offer by cashing Martin's check, issuing the policy, and sending the policy to Martin.

Which one of the following chapters under the Bankruptcy Act gives individual wage earners the same reorganization opportunities available to corporations? Select one: A. Chapter 7 B. Chapter 11 C. Chapter 12 D. Chapter 13

D. Chapter 13 Chapter 7 is for liquidation (the 7 looks like a key→you turn in the key), Chapter 11 is for businesses to reorganize debt, Chapter 12 which is for farmers and fisherman is not in this course, and Chapter 13 is for individuals and small businesses to reorganize their debt.

As a personal trainer at Buff's Gym, Harry was responsible for making sure that gym members did not hurt themselves while working out. Harry underwent special training to be able to identify people in danger of injuring themselves. One day, Harry noticed that a woman was struggling with her free weights, but decided not to help her because no one else seemed to notice that she was in trouble. The woman hurt her wrist and threatened to sue Harry and the gym. Which one of the following best describes whether or not Harry is liable for negligence? Select one: A. Harry is not liable, because the average person would not have noticed that the woman was in danger, under the reasonable person test. B. Harry is not liable, because neither work responsibilities nor moral responsibilities can become the foundation for a tort suit. C. Harry is liable, because he breached the general duty to aid those in danger, which all citize

D. Harry is liable, because he owed a duty to protect customers as an employee and failed to apply his specialized skills with reasonable care. The law typically implies a defendant had a duty of care to a plaintiff when the plaintiff relied on the defendant to exercise due care in their relationship, and the defendant knew or should have known of that reliance.

Which one of the following is a form of misuse of legal process? Select one: A. Wrongful nuisance B. Conversion C. Alteration of court process D. Malicious prosecution

D. Malicious prosecution The tort of misuse of legal process takes two forms: malicious prosecution and malicious abuse of process. Malicious prosecution is the improper institution of legal proceedings against another. Malicious abuse of process is the use of civil or criminal procedures for a purpose for which they were not designed.

In a class action lawsuit involving an insurer's claim practices, the court must consider the elements of Select one: A. Functionality, commonality, adequacy of representation, and number of plaintiffs. B. Extent of harm, numerosity, commonality, and venue of plaintiffs. C. Intentionality, commonality, extent of harm, and venue of the defendant. D. Numerosity, commonality, typicality, and adequacy of representation.

D. Numerosity, commonality, typicality, and adequacy of representation. In this type of a class action the court must consider the elements of numerosity, commonality, typicality, and adequacy of representation. The named parties must fairly and adequately protect the interests of unnamed class members.

Sam held a rifle competition in which he required all entrants to agree to a written general release of liability. Competitor Ralph shot himself in the foot and he intends to sue Sam for damages relating to his injuries. Which one of the following statements relating to this incident is true? Select one: A. Ralph contributed to the accident and therefore cannot recover any damages. B. The written general release of liability only applies to third parties and since Ralph injured himself and not a third party, he has no cause in a lawsuit. C. The written general release of liability generally would not prevent Ralph from suing Sam. D. The written general release of liability agreed to by Sam and Ralph could prevent a successful tort lawsuit.

D. The written general release of liability agreed to by Sam and Ralph could prevent a successful tort lawsuit. A release operates as a legally binding contract between the parties.


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