AI in M&A Legal Due Diligence Quiz

Answers and explanations appear as you take the quiz.

1. Why does the guide say amendments and side letters must be linked to their master agreements during extraction?
   • Data room platforms charge per unlinked document
   • Linking lets the tool skip OCR
   • Otherwise the tool reports terms that were later changed
   • Regulators require amendments to be filed separately
2. According to the guide, what determines whether a change-of-control or assignment clause is triggered?
   • Both the clause's wording and the deal structure
   • Only the purchase price of the deal
   • Only the governing law listed in the contract
   • Whether the AI tool gives the clause a high confidence score
3. Which deal structure does the guide say usually requires assigning contracts to the buyer?
   • A stock purchase
   • A reverse stock split
   • A dividend recapitalization
   • An asset purchase
4. Why does the guide call recall failures the dangerous ones in AI diligence?
   • They slow down the data room upload
   • Nobody looks at what was not flagged
   • They always involve high-value contracts
   • They make the tool's confidence scores unreadable
5. Which two tools does the guide name as well-known AI extraction tools for diligence?
   • Spellbook and Harvey
   • Datasite and Intralinks
   • Kira Systems and Luminance
   • Ironclad and Icertis
6. How does the guide say diligence reports are typically structured?
   • A table listing each contract and its key terms, followed by a red-flag report ranked by severity
   • A single paragraph summarizing the target's history
   • A copy of every contract in the data room
   • A list of the seller's financial projections
7. What does a recall check involve in AI-assisted diligence?
   • Re-running OCR on every document
   • Reviewers reading a random sample of unflagged contracts to see what the tool missed
   • Asking the seller to confirm each extracted clause
   • Checking that every flagged clause is truly present
8. Which kinds of material does the guide say extraction commonly misses?
   • Standard governing law clauses
   • Signature blocks
   • Contract titles and dates
   • Unusual drafting, side letters, amendments and poor scans