PrepL Risk Management and Liability 3

Question 1

An indemnification clause in a contract requires one party to:

Accepted Answer

Hold the other party harmless from specified losses or claims

Answer

An indemnification clause obligates one party to compensate or defend the other against designated losses, damages, or legal claims.

Question 2

A client signs a contract waiving the right to sue a licensee for ordinary negligence. This type of clause is called a:

Accepted Answer

Exculpatory clause

Answer

An exculpatory clause attempts to release one party from liability for their own negligence, though courts may void such clauses when they are against public policy.

Question 3

Which of the following best describes 'assumption of risk' as a defense?

Accepted Answer

The plaintiff voluntarily exposed themselves to a known danger

Answer

Assumption of risk is a defense asserting that the plaintiff knowingly and voluntarily accepted the risks inherent in an activity and therefore cannot recover damages.

Question 4

A property manager fails to repair a broken stair railing after being notified by a tenant. A visitor is subsequently injured. The property manager's liability is most likely based on:

Accepted Answer

Negligence — failure to act with reasonable care after notice

Answer

Once a property manager receives notice of a dangerous condition and fails to remedy it, they breach their duty of reasonable care, establishing negligence liability.

Question 5

The 'but-for' test is used in tort law to establish:

Accepted Answer

Actual causation between the defendant's act and the plaintiff's injury

Answer

The but-for test determines actual cause: but for the defendant's negligent act, the plaintiff's injury would not have occurred.

(PrepL) Preparation for Licensing Practice Test

(PrepL) Preparation for Licensing Practice Test

PrepL Risk Management and Liability 3