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 Los Angeles Lawyer
The Magazine of the Los Angeles County Bar Association
 
 

January 2010     MCLE Test and Answer Sheet

Test No. 188: Fixer-Uppers

 
 

Instructions for Obtaining MCLE Credit

The Los Angeles County Bar Association certifies that this activity has been approved for Minimum Continuing Legal Education credit by the State Bar of California in the amount of 1 hour. To apply for credit, please follow the instructions.

1. Study the CLE article.

2. Answer the test questions by marking the appropriate boxes. Each question has only one answer.

3. Photocopies of this answer sheet may be submitted; however, this form should not be enlarged or reduced. Mail the answer sheet and the $15 testing fee ($20 for non-LACBA members) to:

Los Angeles Lawyer
MCLE Test
P.O. Box 55020
Los Angeles, CA 90055 

Make checks payable to Los Angeles Lawyer.

4. You can also fill in the test form and submit it directly to LACBA by clicking "Submit." To submit your test answers online you will need to pay by credit card. After submitting your answers you will be presented with a screen requesting payment information. This information will be submitted in a secure mode which will allow you to safely transmit your credit card number over the Internet. If you prefer not to pay by credit card, please print this answer sheet and submit your responses by regular mail.

5. Within six weeks, Los Angeles Lawyer will return your test with the correct answers, a rationale for the correct answers, and a certificate verifying the CLE credit you earned through this self-assessment activity.

6. For future reference, please retain the CLE test materials returned to you.

 
 Test Sheet
 
 

Mark your answers to the test by clicking next to your choice.  All questions must be answered.  Each question has only one answer. This test is worth 1 hour of credit.*

1. Lenders who seek the appointment of a receiver to manage their broken condominium projects while they devise their exit strategies can limit their liability by directing the receiver's day-to-day activities.
 True.
 False.

2. Successor owners of broken condominium projects that do not perform construction work on their projects will not have any liability exposure for construction defects.
 True.
 False.

3. If a foreclosing lender did not perform any construction work on the project, it may still have liability as a "builder" under SB 800.
 True.
 False.

4. If the developer chose to opt in to the provisions of SB 800, the successor owner will be required to do so as well.
 True.
 False.

5. Successor owners that are uncertain whether SB 800 will apply if they engage in retail sales should obtain a waiver of SB 800 claims from buyers to avoid liability under the statute.
 True.
 False.

6. A wrap insurance program purchased by a developer to cover its construction defect liability will transfer automatically to the successor owner because the insurance is intended to cover all construction on the project until the expiration of the statute of limitations.
  True.
 False.

7. The purpose of forming a single purpose entity to foreclose on property in place of the original lender is to limit postforeclosure liability to the assets of the SPE.
 True.
 False.

8. A receiver's liabilities are the same as those for a successor owner of a broken condominium project.
 True.
 False.

9. Successor owners that hold the common area of a project for several months may shield themselves from liability for maintenance and management if they do not participate on the board of directors of the homeowners association and in the operation of the property.
 True.
 False.

10. Civil Code Section 3434 provides protection for lenders from construction defect claims even after lenders foreclose and take possession of a property.
 True.
 False.

11. Potential construction defect liability is only one of several risks to be evaluated in deciding whether to purchase a broken condominium project.
 True.
 False.

12. One of the most significant factors affecting construction defect liability for successor owners is whether they engage in retail sales.
 True.
 False.

13. A broken condominium project may be uninsured even if it is under a wrap insurance program, because the program's limits may be exhausted by other projects covered by the same program.
 True.
 False.

14. Bulk sales of units in a broken condominium project present the same construction defect risks and liabilities as retail sales.
 True.
 False.

15. SB 800 defines "original construction" as the portion of a project that existed prior to the project's refurbishment as a condominium conversion.
 True.
 False.

16. Civil Code Section 2782 limits express contractual indemnities provided from subcontractors to the contractor.
 True.
 False.

17. A condominium project is designated as "broken" when it lacks a homeowners association.
 True.
 False.

18. "Hold and wait" is often the best investment strategy for a broken condominium project.
 True.
 False.

19. The successor owner of a broken condominium conversion is not liable under SB 800 for construction defects.
 True.
 False.

20. The California Court of Appeal has ruled that SB 800 applies to foreclosing lenders and bulk purchasers.
 True.
 False.

Address and Billing

After submitting your answers you will be asked to enter your name, address, and payment information on the next screen. Once you have submitted the current form, you will be switched to a secure mode which will allow you to safely transmit your credit card number over the Internet.

If you do not wish to complete this transaction over the Internet you should print this page and send it to the address listed in Step 3 of the instructions at the top of this page.


 
Before clicking the Submit button, please verify that all questions have been answered. An error message will appear if not all questions are answered.

* The Los Angeles County Bar Association has been approved as a continuing legal education provider of Minimum Continuing Legal Education credit by the State Bar of California. This self-assessment activity will qualify for Minimum Continuing Legal Education credit by the State Bar of California in the amount of one hour.

 


 
  
 

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