January 2015 LACBA MCLE Test and Answer Sheet

Test No. 242: Boilerplate Breakdown

To access the article related to this test, please click here.
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
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. The term "as-is" may relieve a seller of real property from liability for observable defects in the property's existing condition.

2. In an as-is sale, no warranties of quality or condition are implied in the sale of the property.

3. When a seller intentionally conceals material defects not otherwise visible or observable to the buyer, an as-is provision will shield the seller from the buyer's claims.

4. An integration clause always defeats claims of fraud in the inception of a contract.

5. Thrifty Payless, Inc. v. Americana at Brand, LLC, found extrinsic evidence inadmissible to establish fraud or negligent misrepresentation in the face of the lease's integration clause.

6. With respect to fraud claims, as-is clauses and integration clauses will always be enforced in accordance with their literal meaning.

7. One factor that the U.S. Supreme Court has set forth to help determine whether an exculpatory clause involves the public interest is whether it concerns a business of a type generally thought suitable for public regulation.

8. Contracts that have for their object to exempt any one from his or her own fraud are against public policy.

9. Exculpatory clauses that shield against liability for passive negligence always shield against liability for active negligence as well.

10. Exculpatory clauses that shield against liability for gross negligence are generally enforceable.

11. Parties can sometimes limit who is liable for certain wrongs, notwithstanding Section 1668 of the Civil Code.

12. In a commercial transaction, a provision liquidating damages is presumptively valid unless the party seeking to invalidate it shows that it is unreasonable.

13. In a commercial transaction, there is no bright-line rule to determine whether a provision liquidating damages is reasonable.

14. The amount of damages actually suffered, as determined after a contract is made, is important in determining the validity of the liquidated damages provision.

15. All provisions attempting to limit the parties' recovery are construed as liquidated damages.

16. Predispute waivers of the right to a jury trial are generally unenforceable.

17. To validly agree to a general judicial reference, a party must expressly waive his or her right to a jury.

18. A general judicial reference can only be entered into after a dispute arises.

19. Since an agreement to submit future disputes to judicial reference acts as a predispute jury trial waiver, it is necessarily unenforceable.

20. Judicial reference provisions are subject to standard rules of contract interpretation and contract defenses, such as fraud or unconscionability.

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 legal ethics credit by the State Bar of California in the amount of one hour.