Deck 3: Property and Liability Loss Exposures

Question 1

Oxanhorse fails to repair Bickley's car on time which causes Bickley to be late for an appointment. As a result, Bickley loses an important contract. Oxanhorse is probably liable for the loss.

Answer 1

False

Question 2

Loss through legal liability for harm caused to others is not a serious financial risk.

Answer 2

False

Question 3

Insurance is available for intentional torts such as slander.

Answer 3

True

Question 4

If Miller breaches a contract with Almaro, such a breach may be properly described as a tort.

Question 5

Imputed liability is illustrated when one person is blamed for the negligence of another.

Question 6

Fewer damage claims would probably be paid under the doctrine of comparative negligence than under the doctrine of contributory negligence.

Question 7

Under the doctrine of res ipsa loquitur, a plaintiff may collect without proving negligence on the part of the defendant.

Question 8

Vicarious liability laws place the liability of the driver of an automobile on the owner.

Question 9

Under workers' compensation laws, the law of negligence is used to settle most claims.

Question 10

The attractive nuisance doctrine may give the status of an invitee to a trespasser who is a child.

Question 11

A manufacturer cannot usually be held liable for loss occurring because of the unsafe use of a product.

Question 12

An agent may be held liable for an insolvent insurer.

Question 13

The last clear chance rule is often used in medical malpractice cases.

Question 14

A homeowner has an obligation to protect a licensee from harm.

Question 15

It is all right for an attorney to mix personal funds with a client's.

Question 16

Clergy do not need professional liability insurance.

Question 17

Under strict tort liability, the consumer must show that the manufacturer was negligent.

Question 18

There are two major categories of property-real and personal.

Question 19

There are two major types of property loss-direct and interruption.

Question 20

The largest losses from single events are usually property losses.

Question 21

Raw land is normally insured under property insurance contracts.

Question 22

Few medical doctors have to worry about being sued for negligent behavior.

Question 23

Regardless of how wrong a defendant may have been, if a suitable defense can be presented, the defendant may be absolved.

Question 24

Individuals are not responsible for diseases spread by their pets.

Question 25

Completed operations insurance covers a contractor while working on a building.

Question 26

Traditionally, courts have treated an automobile as if it were a dangerous instrumentality.

Question 27

An employer may be held liable while an employee is driving a personal car on the employer's behalf.

Question 28

Since many physicians are skilled specialists, they have little need for a good "bedside manner."

Question 29

Match the descriptions with their terms:

-A legal injury or wrong to another arising out of actions other than breach of contract in which courts will allow recovery in an action for damages is a/an _________________.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 30

Match the descriptions with their terms:

-Failure to exercise the degree of care that is required by law is called _________________.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 31

Match the descriptions with their terms:

-A/An _________________ is characterized by failure to do something.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 32

Match the descriptions with their terms:

-An act for which one is held responsible for the acts of another is called a/an _________________.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 33

Match the descriptions with their terms:

-The _________________ of the loss must be an unbroken chain of events between a person's actions and the damage that occurs.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 34

Match the descriptions with their terms:

-The defense of contributory negligence can be refuted if the plaintiff can show that the defendant had a/an _______________ before the accident to avoid injuring the plaintiff.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 35

Match the descriptions with their terms:

-The _________________ reduce the standard of care owed to a passenger in a car.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 36

Match the descriptions with their terms:

-_________________ are individuals who are invited on the premises for their benefit as well as for that of the landlord or tenant.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 37

Match the descriptions with their terms:

-Persons who have legitimate purpose on someone's land but are not specifically invited are called _________________.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 38

Match the descriptions with their terms:

-_________________ include all those other than invitees and licensees who are on the premises.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 39

Match the descriptions with their terms:

-The status of a trespasser may be changed to an invitee by the ________________.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 40

Match the descriptions with their terms:

-Under the _________________ the owner of an automobile is responsible for the use of that vehicle when it is driven by any member of the family.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 41

Match the descriptions with their terms:

-In a _________________ premiums increase at a very rapid rate.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 42

Match the descriptions with their terms:

-In a _________________ premiums increase gradually or may even decline.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 43

Match the descriptions with their terms:

-_________________ is land and all structures permanently attached to land.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 44

Match the descriptions with their terms:

-_________________ is all other property, and so its primary characteristic is that it is not permanently attached to real property.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 45

Match the descriptions with their terms:

-A _________________ occurs when there is damage to a property.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 46

Match the descriptions with their terms:

-_________________ occurs when a direct loss causes expenses to increase or revenues to decline.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 47

Match the descriptions with their terms:

-_________________ are designed to compensate the injured party for pain endured due to the negligent behavior of the defendant.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 48

Match the descriptions with their terms:

-_________________ are assessed when it is deemed that the defendant acted in a grossly negligent manner and deserves to be punished and made an example of.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 49

Match the descriptions with their terms:

-_________________ involves written, printed, or pictorial material that damages a person's reputation by defaming or ridiculing the person.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 50

Match the descriptions with their terms:

-_________________ involves spoken words that are defamatory and/or injurious to a person's reputation.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 51

Match the descriptions with their terms:

-The _________________ is the actual person or organization liable for damages.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 52

Match the descriptions with their terms:

-The federal government established _________________ in order to help fund the cleanup of major pollution sites.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 53

Match the descriptions with their terms:

-The _________________ allows courts to ignore other sources from which a plaintiff might receive indemnity for loss.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 54

Match the descriptions with their terms:

-_________________ is the premise that a manufacturer or vendor has no liability for negligence unless it had a contractual relationship with the injured party.

A) attractive nuisance doctrine
B) collateral source rule
C) direct loss
D) family-purpose doctrine
E) guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 55

One of the following is not an essential characteristic of a negligent act:

A) the act is voluntary
B) the act is intentional
C) the act is negative
D) the act is the proximate cause of the loss.

Question 56

The trend toward absolute liability is illustrated by all but one of the following:

A) passage, of workers' compensation laws
B) weakening of common-law defenses
C) guest-host laws
D) last clear chance rule e. the operation of the res ipsa loquitur doctrine.

Question 57

If a pedestrian is injured by an object falling from a building, the owner is likely to be held liable under the doctrine of

A) comparative negligence
B) family purpose
C) respondeat superior
D) res ipsa loquitur
E) contributory negligence.

Question 58

An employer owes certain common-law duties to an employee, including all but one of the following:

A) to pay a just wage
B) to warn of danger
C) to provide a safe place to work
D) to employ competent fellow employees
E) to provide appropriate tools.

Question 59

A manufacturer has no liability for losses arising out of the use of faulty products unless

A) there was a contractual relationship between the manufacturer and the product user
B) there was improper use of the product
C) the product caused danger to the user when negligently manufactured
D) the retailer or wholesaler was also to blame for the accident
E) the manufacturer is financially able to respond to damages.

Question 60

Even a person who does not own a car may be held liable for its operation by others under the doctrine of

A) respondeat superior
B) res ipsa loquitur
C) family purpose
D) vicarious liability
E) all of the above.

Question 61

A is found to be 70 percent to blame and B 30 percent to blame in an accident in which A suffers a loss of $ 1,000 and B suffers a loss of $ 10,000. Under the doctrine of comparative negligence B recovers

A) nothing
B) $10,000
C) $7,000
D) $7,000 less 30 percent of A's loss
E) none of the above.

Question 62

In the previous question, if the law of contributory negligence were followed, B recovers

A) nothing
B) $10,000
C) $7,000
D) $7,000 less 30 percent of A's loss
E) none of the above.

Question 63

Under common law if both parties are to blame, they cannot collect from one another because of the doctrine of

A) last clear chance
B) contributory negligence
C) assumed risk.

Question 64

Owners of ball parks may defend themselves from lawsuits from fans injured by foul balls under the doctrine of

A) assumed risk
B) comparative negligence
C) contributory negligence.

Question 65

The liability that may be attributed to another by written agreement is

A) statutory
B) res ipsa loquitur
C) contractual.

Question 66

A characteristic of the res ipsa loquitur doctrine is

A) the plaintiff was not in a position to know what happened and the defendant was
B) the defendant and plaintiff were both in a position to use the instrument that caused the loss
C) the proper use of the instrument may often cause damage.

Question 67

A master is liable for agents acting within their scope of employment under the doctrine of

A) contractual liability,
B) respondeat superior,
C) res ipsa loquitur.

Question 68

When a manufacturer is held liable for a product liability loss and no negligence was involved, the plaintiff is using the doctrine of

A) respondeat superior
B) strict tort
C) imputed liability.

Question 69

An implied warranty with respect to a product is

A) the price is fair
B) the goods are reasonably fit for the purpose for which they are intended
C) guaranteed results.

Question 70

When a jury makes an award to a plaintiff that is designed to punish the defendant, such damages are called

A) pain and suffering
B) punitive
C) consortion.

Question 71

Which of the following is not an example of real property?

A) buildings
B) automobiles
C) land
D) trees.

Question 72

The homeowners' policy does not insure

A) personal real property
B) indirect losses
C) personal property
D) business real property.

Question 73

Property insurance does not cover

A) buildings
B) automobiles
C) copyrights
D) furniture.

Question 74

Property insurance will pay for a loss

A) without regard to fault
B) if the peril is covered
C) if the owner of the property is the insured
D) if the loss is less than the policy limit.