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MCLE Test and Answer Sheet
Test No. 102: In the Land of Aas (January 2002 LA Lawyer)

Instructions for Obtaining MCLE Credits
1.Study the CLE article in this issue.

2.Answer the test questions by marking the appropriate boxes. Each question has only one answer. Photocopies of this answer sheet may be submitted; however, this form should not be enlarged or reduced.

3.Mail the answer sheet and the $15 testing fee ($20 for non-LACBA members) to:
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P.O. Box 55020
Los Angeles, CA 90055 
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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. Each question has only one answer. This test is worth 1 hour of credit.*

1. According to the court in Erlich v. Menezes, homeowners who hope a construction project will be error-free are reasonable.

2. Under the economic loss rule, a plaintiff can recover costs for repairing defective conditions that have not manifested damage.

3. Which causes of action in construction defect cases require manifest damage for recovery?
A. Breach of contract and breach of warranty.
B. Strict liability and breach of contract.
C. Strict liability, negligence, and infliction of emotional distress.
D. Breach of express warranty and breach of implied warranty.

4. Negligent performance of a construction contract justifies an award of tort damages.

5. From what case did the implied warranty of nondefective construction arise?
A. Seely v. White Motor Company.
B. Aas v. Superior Court.
C. Erlich.
D. Pollard v. Saxe & Yolles Development Company.

6. What case followed the rationale of the dissents in Aas?
A. Hicks v. Kaufman & Broad Home Corporation.
B. Tellis v. Contractors' State License Board.
C. Vandenberg v. Superior Court.
D. Nash v. MacDonald.

7. Insurance coverage turns on the nature of the damage rather than causes of action asserted in a complaint.

8. What has been the legislative response to Aas?
A. A law has been enacted to establish a 10-year home construction warranty.
B. There is a pending bill that would overturn the decision.
C. To date, all legislative attempts to overturn Aas have failed.

9. Hicks allowed express and implied warranty claims to proceed on what ground?
A. The economic loss rule.
B. Contractual privity.
C. The product contains an inherent defect substantially certain to result in malfunction.
D. A class action does not require proof of individual liability and causation.

10. What is the tension between the economic loss rule and the transfer disclosure law?
A. There is no tension.
B. A seller's property may contain a defect with no remedy, but the seller has to disclose the defect.
C. A seller can avoid the transfer disclosure laws under the economic loss rule.

11. Insurance covers construction defects that have not caused physical damage.

12. The Contractors State License Board can provide remedies for which of the following violations relating to construction defects?
A. A material failure to complete a project for the contract price.
B. A willful violation of building laws.
C. A material disregard of plans and specifications.
D. A material departure from accepted trade standards.
E. All of the above.

13. Under Aas, is the cost of repairs a loss recoverable in tort?
A. Yes.
B. No.
C. Not decided.

14. In Erlich, negligent construction supported a cause of action for emotional distress.

15. Plaintiffs asserting implied warranty claims for defective construction should be concerned about:
A. The requirement of privity.
B. The requirement of reasonable notice of breach.
C. The fact that warranties may be disclaimed.
D. All of the above.

16. Civil Code Section 1102.6 requires that a seller disclose construction defect lawsuits to potential buyers.

17. What is the statute of limitations for latent construction defects?
A. 2 years.
B. 3 years.
C. 4 years.
D. 10 years.

18. Do subsequent owners of real property have any contract remedies against contractors?

19. Does the term "property damage" mean the same in insurance policies as it does under the Aas court's interpretation of the economic loss rule?
A. Yes.
b. No.
C. Not decided.

20. The elements of "willfulness" and "material" required by the CSLB in disciplinary actions are not burdensome to prove.

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*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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