Worth 1 point Which of the following is a negligence tort? Ed decided that he was too busy to shovel his walks, so his walkway was icy. Kerry filled his swimming pool, and left open the access gates to the pook Ken was distracted and his car spun out of control and hit Barb's new car Stella ordered a coffee, but the restaurant manager chose to make the coffee extra hot Bert chose to walk through a busy cafeteria with a backpack, an armload of books, and a cup of scaling hot coffee 3 attempts remaining Worth 1 point Will decides to set off commercial grade fireworks at his home. He invites his neighbours and friends to watch the show. Ann, who lives next door does not attend. Will misfires one of the rockets and it hits Ann's roof. The house catches fire and burns down Did Will owe Ann a duty of care? No, because it was only foreseeable that Ann would be injured, not that her home would be destroyed Yes, because it was foreseeable that Ann's home could be damaged by fireworks Yes, because Ann was invited to the show No. Because Ann is only a neighbour, not a friend will did not need to consider her before acting NO. Since Ann had notice of the fireworks display she should have taken proper precautions Which one of the following statements is the most accurate description of the law of standard of care? Standards of care never change because there must be predictability in the law. A legal standard of care guarantees that a person will be compensated tanjured. The standard of care for all people under 18 years of age is the same The standard of care for all medical doctors that of a reasonably prudent general medical practitioner Parents could be liable for the torts of their children but only if there was failure of the parent to, for example, supervise unruly children adequately 3 attempts remaining Worth 1 point Which of the following situations does not support a negligence suit? Stacey loses her life savings when Peter, a financial planner, advises her to invest in a very shady company. Todd, a three year old, is injured when he picks up a knife left on the floor by a babysitter Kelsey's house burns down when Cari carelessly tosses a lt cigarette into a pile of leaves next to her home. Kevin's car is damaged when Mary hits it from behind because she was not paying attention. At the grocery store, Jack slips on a spill carelessly left by an employee and is unharmed. 3 attempts remaining 723.doc Worth 1 point A company fails to properly install a ceiling. Because of this failure, the ceiling falls on Alex and knocks him unconscious. Ray, who works across the hall, runs into the room to pull Alex out before more damage can be done and is injured by falling debris. Can the company successfully claim it is not liable for Ray's injury? Yes. Since it was not foreseeable that Ray would enter the room, the company is not liable. No. A company is always liable for its negligent actions Yes, Ray voluntarily assumed the risk when he entered the room. No. Ray's attempt to save Alex is not considered a voluntary assumption of the risk Yes, because the company had no previous relationship with Ray Worth 1 point Manufacturers in Canada have which of the following defences to a product liability negligence action? The manufacturer assumed the person using the product in a normal manner contributed to his own damages. The manufacturer assumed the risk that persons could be harmed by the product. The manufacturer has a waiver of liability agreement with the distributor of the product. The product was in its original packaging Sometime between the production of the product and the consumer who was harmed by it, there was an intervening inspection or modification of the product. 3 attempts remaining Worth 1 point Which of the following relationships generally has no fiduciary duty? An agent of a person Suppliers to businesses A director to the corporation A trustee to a beneficiary A lawyer to a client 3 attempts remaining 3 doo Worth 1 point When someone places trust in a professional, that professional has a fiduciary duty to act in that person's best interest. This duty does not include avoiding situations where the client's interests conflict with the fiduciary's keeping the client's information confidential loyalty to the client. using client information for the fiduciary's own benefit acting in good faith towards the client. 3 attempts remaining ODOOTS Question 1/4 Worth 1 point Kevin bought a car insurance policy. In addition to the standard public liability and property damages terms set by regulation, Kevin purchased optional coverage that covered a replacement vehicle, trip interruption coverage, and other extras Kevin did not read any of these terms and relied completely on the insurance agent to help him choose the best policy. If the optional coverage later turns out to have ambiguous terms, what are Kevin's legal rights against the insurer? Kevin owes a duty to himself to read all of the terms in this circumstance." Ambiguities in the terms will be resolved in favour of Kevin Since Kevin did not read the terms of the insurance contract, he has no remedy. The ambiguous terms make the whole insurance contract invalid and therefore Kevin will have no recourse. The all of the terms to Kevin Worth 1 point Which of the following describes a situation where there is no insurable interest? The owner of a car which owes a debt to a bank for a loan on the car The owner of a car which has a no fault collision insurance policy O The wife of a person who has a life insurance policy A person who insures the assets of a corporation in which he has no stake The person whose own life is insured 3 attempts remaining Document.doc RI Worth 1 point The obligation to act in good faith includes a requirement that the insured disclose all pertinent information. Why? Because the insurer is the more powerful party and wants the information Because the insured is the only party with the information that could affect the insurer's rate decision Because the insured sought insurance and therefore must be honest Because the insurer is entitled to deny coverage if the information is not provided Because the insurance contract always states the requirement in its terms 3 attempts remaining dook Worth 1 point An insurance policy is often unenforceable if the insured makes an innocent, material misrepresentation a knowing, material misrepresentation a knowing and immaterial misrepresentation any material misrepresentation any misrepresentation 3 attempts remaining ument723.docx Question 1/15 Worth 1 point What is the difference between intentional torts and unintentional (negligence) torts? Intentional torts must have proof of actual damages to succeed, whereas negligence torts do not Negligence actions usually result in awards for exemplary damages, whereas such damages are not available for intentional torts Other than when strict liability applies, both require fault, but intentional torts require proof of willful action Both can result in a lawsuit, but only intentional forts should concern businesspersons. Fault is required for both, but a bad motive is required for negligence actions 3 attempts remaining Question 2/15 Worth 1 point Which one of the following best describes the duty of care required for a successful negligence action? We owe a standard of care to the reasonable person, We owe a standard of care to the reasonable defendant, The duty of care is established only by statutes passed by a legislature. > Recall that there is no duty to be careful to everyone. The courts use the foreseeable plaintiff test to determine if a person was owed a duty of care. Review Learning objective 2: state when a duty of care arises, how it is breached, and identity the tests used to determine if a duty is owed or a breach has occurred. We owe a standard of care to the reasonable victim We owe a duty to persons we can reasonably predict could be affected by our actions. COX Question 3/15 Worth 1 point Various factors affect the assessment of standard of care in a negligence action. Which one of the following is not a correct statement about the factors used to assess the standard of care? X Standards of care are dependent in part on the alertness of the individual defendant. > The reasonable person test is used to determine the appropriate standard of care. This test asks how a reasonably prudent person, in the same situation and knowing the same information, would have acted. Review Learning Objective 2: state when a duty of care arises, how it is breached, and identity the tests used to determine if a duty is owed or a breach has occurred. The skill and understanding of an adult defendant is relevant to assessing the standard of care. A minor will have a standard of care that may not be the same as an adult's standard of care, If a public official states that his or her conduct that led to injury was justified, then the court will not look any further into the case The expense to achieve an appropriate standard of care in respect of an adult defendant is a relevant Question 4/15 Worth 1 point Occasionally the courts are presented with a new situation where the duty of care owed is not clear. When this occurs, the courts determine if a duty would normally be owed and then consider if there is a social policy reason not to enforce that duty in the new situation dismiss the case because the courts will not expand the class of people owed a duty of care. consider if there is a political reason the duty of care should not be expanded to this new situation. apply the reasonabe foreseeability test to determine if the standard of care was too low. apply the reasonable person test to determine if the duty of care exists > When a new situation arises that does not fit an established category of negligence, the courts, after using the reasonable foreseeability test, consider if there is a social policy reason to restrict or modify the group owed a duty of care. Review Learning Objective 2: state when a duty of care arises, how it is breached, and Question 5/15 Worth 1 point In which of the following situations will the defence of voluntary assumption of risk apply? Mary entered the three-legged race but did not read the waiver of liability form she signed. The form had an unusually onerous clause absolving the event organizer of all liability Bob did not read the instructions for assembling his gas barbecue. The barbecue later blew up causing Bob serious injuries After reading the manufacturer's waiver Ed used a very sharp surgeon's scalpel to cut some paper. The scalpel slipped cutting Ed's hands causing serious injury, Ed sued the manufacturer of the scalpel George is intoxicated and knowingly gets into a tax with another drunken passenger. X Jerry visits Julie's home and realizes the front steps are missing but jumps up to the door and walks into Julie's home > Voluntary assumption of risk is a defence to negligence which states that if the victim clearly understood and willingly undertook both the physical and legal risk of harm, he or she is barred from recovery. Review Learning Objective 4: distinguish defences applicable to the tort of eged bookmarks Question 7/15 Worth 1 point A business is never liable for harmful substances escaping from its premises may be vicariously liable for the negligent acts of its employees is almost never liable for injuries caused by defects in the products it sells rarely is liable for injuries sustained by visitors to its premises can eliminate all legal risk by purchasing property insurance > Recall that a business is liable not only for its own actions that cause harm but also the harmful actions of its employees. Review Learning Objective 5: distinguish occupiers' liability, innkeepers' liability, strict liability, vicarious liability, and product liability Question 8/15 Worth 1 point Strict liability refers to the careless causing of an injury to the person or property of another. > A person who stores dynamite his property and that dynamite, through no fault of his, explodes and destroys a neighbor's home is liable for the damages. This is an example of strict liability. Review Learning Objective 5: distinguish occupiers' liability, innkeepers' liability, strict liability, vicarious liability, and product liability. a wrongful act done to the person or property of another injury resulting from the breach of the standard of care. the liability of an employer to compensate for harm caused by an employee liability that is imposed regardless of fault Question 10/15 Worth 1 point Which of the following is not an indicator of the existence of a fiduciary duty? A person relying on the advice provided by another person A professional relationship involving significant trust between the parties The ability of a person to unilaterally exercise power or discretion to affect another person with whom she has a relationship The scope for exercise of some discretion or power by one person over another A person being particularly vulnerable to or being at the mercy of another person holding discretion and power > Afiduciary duty arises when a person places his affairs in the hands of a trusted adviser, giving the advisor significant power to influence the decisions. Review Learning Objective 6: describe the circumstances when professional liability may arise Worth 1 point A business may be held liable in various ways for its own acts, or the acts of its employees, that cause damage to its customers or clients and to the public in general. As a result, which of the following will a business not normally have liability insurance against? Liability for defective products Liability for negligent acts and omissions Liabety for the dangerous state of its premises LOSS of profit due to interruption of business activities Laby for breach of its professional duty of Care > Recall that liability insurance is designed to shift the risk of loss arising directly from tort liability from the insured to the insurer Business interruption insurance is not liability insurance. Review Learning Objective 7: describe four types of insurance business commonly need Worth 1 point Sam and Stove are partners in a profitable lumberyard. If either of them dies, the surviving partner has to pay the estate a hall interest in the assets of the business (to buy out the deceased partner's interest) Therefore, Sam and Steve have each taken out life insurance on the other to provide the necessary funds Stove is involved in a bad car accident and dies Does the insurer have grounds for refusing to pay the claim? Yes, because the cause of Steve's death unrealed to the business Yes, because Sam did not practise utmost good faith with the insurer No, because Sam has an insurate interest in Slove No, because Steve was not the cause of his own death Yes, because Sam does not have an insurable interest in Sive > An insurable interest exists when the insured will suffer a loss if the anticipated event for example a food in the case of food insurance ad Worth 1 point The Smiths, a family of three (mom ded, and their 17-year-old daughter, Jess) had three vehicles Mr. Smith owned all the vehicles. Generally speaking, Mr Smith drove the pick-up truck, Mrs. Smith drove the four-door sedan, and Jess drove the convertble. Al three drive the vehicles every day, to got to work in the case of the parents and to get to school in the case of Jess When Mr. Smith applied for auto insurance including optional coverage for collision damage, he declared that Jess was an occasional driver who drove one of the vehicles on the weekends only Based on these facts which of the following is correct? Mr. Smith has no insurable interest in the vehicles because he is not the sole driver X Regardless if the statement that Jess was an occasional driver was a material misstatement of insurable risk the insurance company would still be responsible for coverage an accident were to cut > Generally, a knowing misrepresentation of material information to the insurer will result in the underlying policy being unenforceable. Review Learning Objective : explain the significance of insurance being a contract of utmost good faith Jess has no insurable interest due to being an occasana ve and coverage for an accident may be denied depending on the statutory provisions in force intro Documento