1. Rocko has a private gambling business which he carries out secretly in a building insured by Better Insurance Co. under a standard policy covering all loss by fire. Rocko’s creditor, the Mobb, is not happy with Rocko because he is not paying his debts to them on time. Rocko’s building is destroyed by fire one night, under suspicious circumstances! In the investigation which followed, this was the decision

A. the insurance company must pay the proceeds of the insurance policy to Rocko

B. the insurance company does not have to pay the proceeds of the insurance policy at all.

C. the insurance company does not have to pay the proceeds of the insurance policy to Rocko, but must pay it to his creditors

D. the insurance company must pay the insurance proceeds to the policy department because of the nature of Rocko’s business

E. none of the above

2. Larry wants to obtain insurance for his software company,Kiwi.He has 2 brilliant and very creative software programmers and game designers. His insurance agent, who arranged the policy with an insurance company, asks Larry if he wants “key person”insurance. In this case, the insurance policy would include;

A. terms regarding property damages

B. terms regarding employee liability

C. terms regarding life insurance for those 2 creative employees, with the company named as beneficiary

D. terms regarding health and disabilty insurance for all employees

E. a confidentiality clause holding those 2 employees to secrecy in the company

3. Western Bank would not give Anthony a business loan without a suitable guarantor. Anthony’s father, Glen, signed the loan documents as a guarantor. Glen must make the loan payment when

A. the bank requests his payments.

B. he is notified in writing by the bank

C. he is notified in writing by the debtor

D. Anthony requests that he make the payments

E. Anthony defaults on his payments to the bank

4. when an employer hires an employee for an unspecified period and the employee takes a job with another company, the employee is:

A. required to provide the employer with two months’ notice to end the employment contract.

B. required to provide he employer with all the reasons why they are ending the employment contract.

C. not required to give notice to the employer that they are ending the employment contract.

D. required to give resonable notice to the employer to end their employment contract.

E. in breach of contract by leaving and the employer can take them to court

5. John has a lease for farm land owned by Phil. The lease does not specify the dates on which the lease will begin or end, but it says the lease is for a term of 2 years. john and phih sign and data the lease.In this case, the term of the lease is

A. a periodic tenancy

B. ascertainable

C. a license

D. a fixture

E. a tenancy at sufferance