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

September 2011     MCLE Test and Answer Sheet

Test No. 206: Troubled Indemnity

 
 

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 $20 testing fee ($25 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. Indemnification is an agreement between two parties in a business relationship that allows a third party to mediate and settle monetary disputes.
 True.
 False.

2. The California Code of Civil Procedure contains explicit guidelines regarding the statute of limitations for indemnity actions.
 True.
 False.

3. Equitable indemnity requires a contractual relationship between an indemnitor and an indemnitee created from a written instrument.
 True.
 False.

4. California courts currently view implied contractual indemnity as a form of equitable indemnity instead of as a separate form of indemnity.
 True.
 False.

5. Courts only recognize a claim for indemnity when the contract at issue explicitly provides for indemnification.
 True.
 False.

6. The statute of limitations for an express indemnity action based on a written instrument is two years.
  True.
 False.

7. The statute of limitations for an indemnification claim based on an oral contractual provision is two years.
  True.
 False.

8. Parties can find California case law supporting an interpretation that the applicable statute of limitations for an implied obligation to indemnify is four years, not two.
  True.
 False.

9. In Amen v. Merced County Title Company, the California Supreme Court held that the statute of limitations was two years because one of the parties had not signed the written instrument and, therefore, only an oral contract existed.
  True.
 False.

10. Liberty Mutual Insurance Company v. Hartford Accident & Indemnity Company is conclusive authority that the applicable statute of limitations for indemnity actions not derived from a written contract--for example, equitable indemnity--is four years.
  True.
 False.

11. For disputes involving a contract indemnifying against liability, the statue of limitations begins to run when liability is incurred.
 True.
 False.

12. When an agreement indemnifies against damages, the party indemnified is entitled to recover without first making a payment.
 True.
 False.

13. When an indemnity agreement contains provisions for liabilities and damages, the statute of limitations for all provisions is the shortest applicable statute of limitations.
 True.
 False.

14. The costs of legal services incurred by the indemnitee to defend against a suit are not indemnified unless the indemnity contract explicitly provides for the recovery of those costs.
 True.
 False.

15. Under Civil Code Section 2778(3), any and all costs incurred in pursuing an indemnity claim against the indemnitor are indemnified.
 True.
 False.

16. When the indemnitee must pay a legal obligation after losing in litigation, the statute of limitations commences on the date when payment is made to satisfy the liability--not when the expenditures for attorney's fees are made.
 True.
 False.

17. When an indemnitee loses a lawsuit, its attorney's fees are added on to the payment made to satisfy the liability--and the indemnitor must indemnify that sum.
 True.
 False.

18. An indemnitee that is victorious in litigation cannot recover the reasonable costs of attorney's fees from the indemnitor.
 True.
 False.

19. If an indemnitee successfully defends itself in a lawsuit, the claim for indemnification of attorney's fees accrues when the indemnitee pays the fees.
 True.
 False.

20. An indemnitee defending a lawsuit may find itself barred from recovering the amount it paid to its attorneys if the lawsuit is not resolved until after the applicable period of limitations has expired.
 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 in ethics by the State Bar of California in the amount of one hour.

 


 
   
 

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