business law questions

Question 4 A land appraiser prepared an appraisal of a property for a real-estate development company. The appraiser had been told that the appraisal would be used by the company to attract Not yet potential investors. Because the appraiser forgot to check the recent changes in the zoning by-laws, the appraisal was not accurate; the investor, a party unknown to the appraiser, was answered misled about the value of the land and, consequently, suffered a financial loss. On these facts, which of the following is true? Marked out of 1.00 Select one: Flag O a. A land appraiser owes a duty of care to his client, the company, but not to any potential investors. question O b. The investor must suffer his own loss, because an investor takes the risk and so must take care. O C. A land appraiser owes a duty of care to his client, and to potential investors only if he knows the name of the investor. O d. The investor might sue the appraiser for "negligent misstatement causing economic loss." Question 5 In which of the following would the plaintiff NOT succeed in an action for negligence? Not yet answered Select one: Marked out of O a. Dr. Alberts used the skill of a reasonable doctor in his field, but his patient did not respond to the treatment and lost hearing in one ear. The patient sued the 1.00 doctor. Flag question O b. A real-estate agent accidentally forgot to lock the back door of the house he had just shown. Before the owner returned, someone broke in and stole the TV. The owner sued the agent. O c. A real-estate agent failed to check the zoning requirements for a property. Yet, he assured the purchasers that they could build a duplex on it. Relying on the agent' s statement, they bought the property. Subsequently, the municipality refused to issue a building permit to the purchasers and they had to sell the property at a loss. The purchasers sued the agent. O d. Shunan was made sick by drinking a contaminated cola bought for her by her friend Fred. She sued the manufacturer. Question 6 Jackie works as a financial-planning consultant for Mooney Lid., a company that provides financial advice to its clients. At a three-martini lunch with Ben, one of Mooney's clients, and Not yet Carson, a friend of Ben's, Jackie mistakenly advised Ben to buy shares of Moose Mining Inc. because she thought that Mooney Lid.had investigated the prospects of the company. In fact, answered Mooney had investigated Goose Mining and was recommending it to its clients. As it turned out, Ben ignored Jackie's advice but Carson bought a lot of Moose Mining shares and lost all of Marked out of his money when the mining operation went broke. Which one of the following statements accurately describes Carson's legal situation? 1.00 Flag question Select one: O a. Jackie cannot be held liable for Carson's loss, but Mooney can be because it employed Jackie. O b. Jackie can only be held liable if Carson can establish that Jackie owed him a duty to be careful. O c. Carson will have to sue Benson and then Benson can turn around and sue Jack under the principles of vicarious liability. O d. Because there was no contractual connection between Carson and anyone else, he has no legal right to compensation.Question 7 The courts apply tests to determine whether various elements of the tort of negligence have been proven. Which of the following fails to accurately describe these tests? Not yet answered Select one: Marked out of a. 1.00 The reasonable foreseeability test is used to establish a duty of care. Flag question b. The "but for" test is the only test used to establish causation. O C. The test is used to determine the standard of care is the reasonable person test. O d. In the context of a negligent misrepresentation action, reliance on the negligent statement establishes causation. Question 8 In light of the potential liability professionals may face, which of the following is NOT likely to minimize their exposure? Not yet answered Select one: Marked out of O a. Acting in accordance with one's religious beliefs. 1.00 O Flag b. Maintaining adequate liability coverage. question O c. Fulfilling one's fiduciary obligations. O d. Acting with the care, skill and diligence exhibited by a reasonable practitioner in their field of expertise. Question 9 Martha hired Dave to prepare her tax returns for 2017. Dave forgot all about the retainer and failed to file the returns at all. Were Martha to bring legal action against Dave, her best cause Not yet of action would be: answered Marked out of Select one: 1.00 O a. to sue for failure to follow the Code of Conduct. Flag D question b. to sue for breach of fiduciary duty. O c. to sue based on negligent misrepresentation. O d. to sue for breach of contract. Question 10 Frank is a sales representative paid largely on a commission basis by his employer, Jed's Used Trucks. He tells a customer that a certain vehicle is in mint condition and is virtually new. In Not yet fact, the vehicle is 7 years old and has been driven for over 100,000 kilometers. If the customer relies on this representation and suffers a loss, the customer: answered Marked out of Select one: 1.00 O a. will only be able to claim deceit. Flag question b. will have no cause of action as against Frank. O c. will potentially have a claim against Frank based on negligent misstatement. O d. will have no cause of action as against Jed's Used Trucks.Question 1 You found a piece of real estate that you think is perfect for a commercial development. You retain a lawyer to do some initial due diligence regarding the land. Unfortunately, you cannot Not yet get financing to purchase the land. Six months later, you find out your lawyer purchased the land with financing provided by the same bank you had applied to earlier. Which of the answered following claims might you have against the lawyer based on the facts provided to you? Marked out of 1.00 Flag Select one: question O a. Negligence. O b. Breach of contract. O c. Fraudulent misrepresentation. O d. Breach of fiduciary duty. Question 2 Sumanthra, an accountant, prepared financial statements for ZeeTech Lid. A cutting edge technology company, ZeeTech was actively seeking private investment in order to finance a new Not yet electronics device. Despite the fact that Sumanthra followed Generally Accepted Accounting Principles (GAAP), the statements she prepared were misleading. Arif and Alena, both answered potential investors, relied on the statements Sumanthra had prepared in investing in ZeeTech and both lost a considerable sum of money as a result. Arif and Alena each decided to sue Marked out of Sumanthra for their financial loss. Which of the following is TRUE? 1.00 Flag Select one: question O a. Sumanthra has nothing to worry about, because an accountant who follows GAAP could not have breached the standard of care. O b. Sumanthra has nothing to worry about, because an accountant who follows GAAP could not have breached the standard of care owed in negligence law. O c. Sumanthra will not escape liability because accountants are automatically liable for losses arising from the use of financial statements they prepare. O d. Sumanthra will not escape liability in negligence simply because she followed GAAP. Question 3 Which of the following statements does not describe the standard expected of experts? Not yet answered Select one: Marked out of O a. Must exercise skill with degree of care expected from a reasonable person in that profession. 1.00 O b. The standard of an expert need not be perfection. Flag question O c. Inexperience does not excuse incompetence. O d. Common practice always sets the appropriate standard