AILET entrance exam Question Bank Solutions

According to SEBI norms, a person found guilty of indulging in unfair trade practices shall be liable to a penalty of

1. Rs. 25 crore
2. Three times the amount of profits made out of such practices, .....

The correct answer is :

Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principle:

1. A person is liable for his negligence when he owed a duty of care to others and commits a breach of that duty·causing injury thereby.
2. Valenti non-fit injuria is a defence to negligence.

Factual Situation: Anil and his wife, Reena, were in a shop as customers, where a skylight in the roof of the shop was broken, owing to the negligence of the contractors engaged in repairing the roof, and a portion of the glass fell and struck Anil causing him a severe shock. Reena, who was standing close to him, was not touched by the falling glass, but, reasonably believing her husband to be in danger, she instinctively clutched his arm, and tried to pull him from the spot. In doing this, she strained her-leg in such a way as to bring about a recurrence of thrombosis. Anil and Reena are claiming compensation for their injuries which were caused due to the negligence of the shop owners. The shop owners are denying liability on the grounds of  Valenti non-fit injuria. The defense of Valenti non-fit injuria.

Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:

1. Private nuisance is a continuous, unlawful and indirect interference with the use or enjoyment of land, or of some right over or in connection with it.
2. The person who for his own purposes brings on his lands and collects and keeps there anything likely to do mischief if it escapes must keep it at his peril, and, if he does not do so, is prima facie answerable for all the damage which is the natural consequence of its escape.
3. A person is liable if he can reasonably foresee that his acts would likely to injure his neighbour.
4. The foreseeability of the type of damage is a pre-requisite of liability in actions of nuisance.

Factual Situation: During 2011, a European Directive was issued requiring nations of the European Community to establish standards on the presence of Perchloroethene (PCE) in water, which the Kingsland did in 2013. Alfa Water Co. purchased a borehole in 2007 to extract water to supply to the public in Kingsland. In 2014, it tested the water to ensure that it met minimum standards for human consumption and discovered that it was contaminated with an organochlorine solvent (PCE). On investigation, it emerged that the solvent seeped into the soil through the building floor of the Light & Soft Leather Tannery, about 3 miles from the borehole that eventually contaminated the Alfa's borehole. Since the tannery opened in 191 O, until 2007, the solvent it used had been delivered in 40-gallon drums which were transported by forklift truck and then tipped into a sump. Since 2007, solvents had been delivered in bulk and stored in tanks. It was then piped to the tanning machinery. There was no evidence of any spills from the tanks or pipes, and it was concluded that the water had been contaminated by frequent spills under the earlier system. Alfa Water brought a claim against the Tannery on the grounds of nuisance.
Whether the Tannery owners are liable?

Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:

1. Private nuisance is a continuous, unlawful and indirect interference with the use or enjoyment of land, or of some right over or in connection with it.
2. The person who for his own purposes brings on his lands and collects and keeps there anything likely to do mischief if it escapes must keep it at his peril, and, if he does not do so, is prima facie answerable for all the damage which is the natural consequence of its escape.
3. A person is liable if he can reasonably foresee that his acts would likely to injure his neighbour.
4. The foreseeability of the type of damage is a pre-requisite of liability in actions of nuisance.

Factual Situation: M G Ltd. was constructing Crystal Heights, a posh state-of-the-art tower for commercial and residential purposes, in Gurugram. During construction, hundreds of claimants alleged that, in addition to dust and noise caused by the erection of the building, their television signals had been interrupted by the tower. The claimants, some of whom were absolute owners, and many others who were renting, sued in both negligences and in nuisance for the harm done to their amenity by the loss of their television signals. Whether the respondent's action in causing the appellant's television signals to be interrupted with the construction of their tower could constitute a private nuisance?

Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principle:

1. 'Misrepresentation' means and includes -the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; any breach of duty which, without an intent to deceive, gains an advantage of the person committing it, or anyone claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him; causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.
2. The tort of negligent misstatement is defined as an inaccurate statement made honestly but carelessly usually in the form of advice given by a party with special skill/knowledge to a party that doesn't possess this skill or knowledge.

Factual Situation: The plaintiff, Mr. Madan, entered into a tenancy agreement with the defendant, Esso Petroleum, in respect of a petrol station owned by the latter. During the course of the negotiation of the agreement, 'expert' advisers employed by the defendant had provided an estimate of the sales which the petrol station could expect which was based on inaccurate information and consequently was significantly inflated. The value of the rent on the agreement had been calculated based on this inflated figure. As a result, it was impossible for the plaintiff to operate the petrol station profitably. Whether the plaintiff could have any action for negligent misrepresentation?

Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:

1. The Tort of Negligence is a legal wrong that is suffered by someone at the hands of another who fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.
2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.
3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant. The claimant must prove, on the balance of probabilities, that the defendant's breach of duty caused the harm.

Factual Situation: Amar worked for an ironworks, Luxmi Mills & Co. Ltd. operating a remotely controlled crane, Amar galvanized items by dipping them into a large tank of molten metal. In order to protect its crane operators, whose controls were located just a few feet from the tank, Luxmi Mills erected a low wall around the tank and also provided a sheet of corrugated iron that crane operators placed between themselves and the wall. The operators were not facing the tank while operating the crane. Thus, they could not see the operation of the crane and therefore relied upon signals from another worker located farther from the tank. Many other galvanizers at the time situated their operators in enclosed, windowed spaces from which they could safely see and perform their work. Luxmi Mills eventually adopted that practice as well. One day, Amar was working on the crane. At one point, he either turned toward the tank or leaned out to see the worker giving him instructions, thereby placing his head outside the iron sheet. A spray of molten metal burned Amar's lip. When it failed to heal and began to ulcerate, he consulted a doctor who diagnosed the wound as cancerous. Amar ultimately died from the spread of cancer after three years. His widow sued Luxmi Mills for negligence. Whether the employers would be liable for the full extent of the burn and cancer that had developed as a result?

Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:

1. The Tort of Negligence is a legal wrong that is suffered by someone at the hands of another who fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.
2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.
3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant. The claimant must prove, on the balance of probabilities, that the defendant's breach of duty caused the harm.

Factual Situation: A 13-year-old boy fell from a tree. He went to a hospital where his hip was examined, but an incorrect diagnosis was made. After 5 days it was found that he was suffering from avascular necrosis. This was more advanced and serious than if it had been spotted straight away. Despite receiving treatment, it was determined that he had suffered from a muscular condition (avascular necrosis) which left the boy with a permanent disability and further left a strong probability that he would develop severe osteoarthritis later in life. The expert medical testimony indicated that had his fractured hip been identified on his initial hospital visit, there was a 25% chance of his condition having been successfully treated. He is claiming compensation for the negligence of the hospital. Whether the hospital's negligence on his initial visit had caused his injury?

Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principle: Vicarious liability is when employers are held liable for the torts committed by their employees during the course of employment.

Factual Situation: New Vision School opened a boarding house (Shivaji House) for boys in the year 2000 for the students having behavioral and emotional difficulties. The claimants in the instant case had resided there between 2000 to 2003, being aged 12 to 15 during that time, under the care of a warden, who was in charge of maintaining discipline and the running of the house. The warden lived in the House, with his disabled wife, and together they were the only two members of staff in the House. His duties were ensuring order, in making sure the children went to bed, went to school, engaged in evening activities, and supervising other staff. It had been alleged by some of the boys that the warden had sexually abused them, including inappropriate advances and taking trips alone with them. A criminal investigation took place some ten years later, resulting in the warden being sentenced to seven years imprisonment. Following this, the victims brought an action for personal injury against ~he employers, alleging that they were vicariously liable. Whether the employers of the warden may be held vicariously liable for their employee's intentional sexual abuse of school boys placed under his care?

Torts is a ________

Injuria sine damnum stands for.

Unliquidated damage stands for

Consent defines as

Defamation means

Qui facit per alium facit per se stands for

Public nuisance include

The defence under nuisance is

PRINCIPLE Where the plaintiff himself is in fault, the defendant shall not be answerable for the harm brought on by the plaintiff's own actions.

FACTS Jimmy had put up a board in his house warning all trespassers of ‘Beware of Dogs’. Jimmy arrived home using a cab and since he did not have the wallet asked the driver to stay outside. He received a long-distance phone call and spoke for 20 straight minutes. The cab driver outside was getting very restless and was ringing the bell which turned out to be broken. Left with no other alternative the driver came in only to be bitten black and blue by Jimmy's Rottweiler. In a suit brought by the cab driver 

PRINCIPLE Whoever by words either spoken or intended to be read or by signs or by visible representations makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is to defame that person.

FACTS In a community, there is a custom of stealing shoes of the bridegroom during the marriage ceremony. The shoes of the bridegroom were stolen by 'Y'. 'A' announced that 'Z' has stolen the shoes. Everyone present in the marriage party started staring at 'Z' with great surprise. 'Z' felt very ashamed.

PRINCIPLES

I. A master is liable for the wrongful acts of his servant.
II. A person can be called a servant only if there is a relation of employment and he acts under the order and on behalf of his master.

FACTS

X bank launched a saving scheme for poor sections of the society and the customer can deposit ₹10 per day. Y, an unemployed youth, collected money from several customers, and on behalf of them deposited the money at the bank every day. The bank gave to Y a small commission. After some time, Y disappeared without depositing the money given by the customers. The customers bring a suit alleging that the bank is liable. Decide 

The railway authorities negligently allowed a train to be overcrowded. In consequence, a legitimate passenger Mr. X got his pocket picked. Choose the appropriate answer.