MIXED

Question 1

The chancery Division is a division of the:

A) County court
B) Crown court
C) High court
D) Supreme Court

Answer 1

C) High court

Question 2

The Marine Insurance Act 1906 is an example of a:

A) A codifying act
B) Delegated legislation
C) International legislation
D) Retrospective act

Answer 2

A) A codifying act

Question 3

A ‘litigation friend/next friend’ is someone who is responsible for litigation costs awarded against a claimant who is a:

A) Bankrupt
B) Company
C) Partnership
D) Minor

Answer 3

D) Minor

Question 4

One of the requirements for the rule in Rylands V Fletcher to operate, is that there must be:

A) A defamatory statement
B) Fault or negligence
C) A negligent Misstatement
D) A non-natural use of land by the defendant

Answer 4

D) There must be a non-natural use of land by the defendant

Question 5

For which tort is the claimant never required to prove that he has suffered loss or damage:

A) Negligence
B) Nuisance
C) Slander
D) Trespass to land

Answer 5

D) Trespass to land

Question 6

Katy’s mother brought her an iron, which turned out to be defective and caused a fire. It resulted in damage to Katy’s personal property amounting to £500 and sever burns to Katy’s right hand. In order to achieve a recovery at law, which legal action should be pursued?

A) Katy’s mother should sue the seller in tort based on the principal of negligence
B) Katy should sue her mother on the principle of vicarious liability
C) Katy should sue the manufacturer based on the provisions of The Consumer Protection Act 1987
D) Katy should sue the seller for breach of contract in selling a defective electrical product.

Answer 6

C) Katy should sue the manufacturer based on the provisions of The Consumer Protection Act 1987

Question 7

An insurance policy would automatically be illegal and void if it is:

A) An employers liability policy for a company without any employees
B) A household contents policy covering a gun collection
C) A life insurance policy taken out by a person who has no insurable interest in the life of the insured.
D) A marine cargo policy taken out by a person who is not the owner of the cargo.

Answer 7

C) A life insurance policy taken out by a person who has no insurable interest on the insured.

Question 8

Adam had a contract with a specialist storage company to store some valuable paintings, but damp storage conditions resulted in damage to the paintings. Although Adams contract did not expressly state the storage requirements had to be suitable, he successfully sued the storage company on the basis that the contract terms were implied:

A) By custom
B) By EU regulation
C) In fact
D) In law

Answer 8

C) In fact

Question 9

The cancer division is a devision of the:

A. crown court
B. County court
C. High court
D. Supreme Court

Answer 9

C. High court

Question 10

The marine insurance act 1906 is an example of a:

A. codifying act
B. Delegated legislation
C. International legislation
D. A retrospective act

Answer 10

A. A codifying act

Question 11

One of the requirements for the rule of Rylands V fletcher to operate is that there must be:

A. A defamatory statement
B. Fault or non-negligence
C. A negligent misstatement
D. A non natural use of the land by the defendant

Answer 11

A non natural use of the land by the defendant

Question 12

what is another name for ‘strict liability’

Answer 12

‘non fault liability’

This is when a person is held liable even when their actions are neither intentional nor negligent.

Liability in contract is usually strict - and it will usually be no defence to a breach In contract for the defendant to plead that all reasonable care was taken and there was no negligence on their part.

Question 13

For which tort is the claimant never required to prove that he has suffered loss or damage?

A. negligence
B. nuisance
C. Slander
D. Tresspass to land

Answer 13

D. Tresspass to land

Question 14

With regard to formation of a contract, consideration must always be a:

A. benefit to the person receiving it, detriment to the person giving it.
B. Detriment to the person receiving it or benefit to the person giving it.
C. Benefit to both the person giving and the person receiving it.
D. Detriment to both the person giving it and the person receiving it.

Answer 14

A. Benefit to the person receiving it and detriment to the person giving it.

Question 15

An insurance broker grants cover for motor insurance to a 21 year old proposer. However, the brokers authority is restricted to only granting cover to drivers aged 23 and over. What basis, if at all, is the insurer bound to cover the 21 year old?

A. Agency by estoppel
B. Apparent authority
C. Implied actually authority
D. The insurer is not bound

Answer 15

B. Apparent authority

Question 16

Adam had a contract with a specialist storage company to store some valuable paintings, but damp storage conditions resulted in damage to the paintings. Although Adams contract did not expressly state the storage requirements had to be suitable, he did successfully sue the storage company on the basis that the terms were implied…

A. By custom
B. By EU regulation
C. In fact
D. In law

Answer 16

C. In fact

Question 17

What is a condition precedent to the contract

Answer 17

This is when it states that the policy will not come into effect if the insured fails to comply

Question 18

What are conditions precedent to liability?

Answer 18

A term which allows the insurer to discharge themselves from liability of a particular loss if the term is broken

Question 19

What are collateral conditions?

Answer 19

The breach of which would still allow the claimant to make a claim under the policy - doesn’t go to the root of the contract - the insurers cannot repudiate the claims on this basis

The insurer can reject claims or reduce claim payments in this case

Question 20

Give an example of a collateral condition

Answer 20

In EL, where the insured is required to keep a record of wages in a wages books - this is a mere collateral condition for the purpose of adjusting premium rather than a condition precedent

Question 21

How can we tell whether a condition is precedent or collateral

Answer 21

This is a matter of construction of the term, where is doesn’t refer to the words ‘condition precedent’ we can assume it is collateral

Question 22

What is the only way to prove waiver of an insurance warranty?

Answer 22

By promissory estoppel

Question 23

For ways to prove the insurer waived their rights by estoppel

Answer 23

If they, knowing the breach;

Issued or renewed a policy
Accepted further premiums
Advised the insured about future loss prevention
Resisted the claim on any grounds other than a breach

Question 24

Who is icobs relevant to?

Answer 24

Both consumers and non consumers

Question 25

Can the parties of a consumer contract contract out?

Answer 25

Under IA, no, not if this would put the consumer at a worse position than the act provides

Question 26

Can the parties of a non consumer contract contract out?

Answer 26

No, this is prohibited even if the transparency requirement is met

Question 27

Give some examples on when an insurer cannot decline a claim under EL due to a breach?

Answer 27

Late notification

Failure to comply with a condition requiring them to take reasonable care to protect employees

The use of an excess is also prohibited

Question 28

What is the maximum liability method

Where the loss is shared to the maximum amount of cover available under each policies

Answer 28

Sums instead under policy one divided by total under both policies and multiplied by the loss

Do this for each one

Question 29

What is the independent liability method

Answer 29

Each policy is treated as if they’re the only one in force, this is then shared in proportion of the two insurers

Do the maximum liability method for each individual insurer
Then calculate the proportion that each will take

Question 30

When do we use the independent liability method?

Answer 30

When it’s a liability claim or Property which is subject to average