Question 1

A fiduciary duty may exist in the absence of a contractual duty.

Accepted Answer

A) True 
 B)False  True

Question 2

If a client sues a professional for failing to exercise reasonable care in giving advice,but the client has suffered no damage as a result,the professional will not be liable.

Accepted Answer

A) True 
 B)False  True

Question 3

Use the fact situation in Q6 to answer the related question that follows. In this situation,if the value of the company increases substantially so that Carol makes money on her investment,

Accepted Answer

A) Carol will still suffer damages,but will only have an action against the accountant. 
B) Carol will still suffer damages,but will only have an action against Henry. 
C) Carol will still suffer damages,but will only have an action against the bank. 
D) Carol will still suffer damages and have an action against the accountant and the bank. 
E) Carol has suffered no damages and has no action at all. 
A) Carol will still suffer damages,but will only have an action against the accountant. 
B) Carol will still suffer damages,but will only have an action against Henry. 
C) Carol will still suffer damages,but will only have an action against the bank. 
D) Carol will still suffer damages and have an action against the accountant and the bank. 
E) Carol has suffered no damages and has no action at all. E

Question 4

Explain what is meant by the "duty to account" of a professional who has committed a breach of trust.

Accepted Answer

Professionals or other persons in fiduci

Question 5

Where a professional undertakes a task that is beyond the usual skills of his or her profession,

Accepted Answer

A) the professional must still follow the recommended standard. 
B) the professional must use the degree of skill and knowledge commensurate with the task undertaken. 
C) the professional must follow a well-known practice. 
D) the professional must follow all standards suggested as the proper standard. 
E) the professional need not follow any standard. 
A) the professional must still follow the recommended standard. 
B) the professional must use the degree of skill and knowledge commensurate with the task undertaken. 
C) the professional must follow a well-known practice. 
D) the professional must follow all standards suggested as the proper standard. 
E) the professional need not follow any standard.

Question 6

What is a conflict of interest?

Accepted Answer

A conflict of interest is a situation wh

Question 7

If the plaintiff has suffered no damages,a defendant who has breached a fiduciary duty will not be held liable.

Accepted Answer

A) True 
 B)False

Question 8

What is deceit?

Accepted Answer

Deceit is the intentional maki

Question 9

A fiduciary duty exists between a professional and his or her client when

Accepted Answer

A) the professional lends money to the client. 
B) the principle of equity imposes such a duty. 
C) the client owes money to the fiduciary. 
D) a special relationship of trust exists. 
E) a contract exists between the professional and the client. 
A) the professional lends money to the client. 
B) the principle of equity imposes such a duty. 
C) the client owes money to the fiduciary. 
D) a special relationship of trust exists. 
E) a contract exists between the professional and the client.

Question 10

The greater exposure of professionals to liability for professional negligence has led to the extensive use of

Accepted Answer

A) private investigators. 
B) acceleration clauses. 
C) liability insurance. 
D) disclaimer clauses. 
E) professional fees. 
A) private investigators. 
B) acceleration clauses. 
C) liability insurance. 
D) disclaimer clauses. 
E) professional fees.

Question 11

A misrepresentation is

Accepted Answer

A) a false assertion of fact made without knowledge of its falsity,and with honest belief in its truth. 
B) a false assertion of fact made with knowledge of its falsity,or without honest belief in its truth. 
C) a false assertion of fact about another person that defames that person. 
D) a statement of fact that was true when it was made,but later became false due to changes in circumstances. 
E) a missed representation. 
A) a false assertion of fact made without knowledge of its falsity,and with honest belief in its truth. 
B) a false assertion of fact made with knowledge of its falsity,or without honest belief in its truth. 
C) a false assertion of fact about another person that defames that person. 
D) a statement of fact that was true when it was made,but later became false due to changes in circumstances. 
E) a missed representation.

Question 12

Negligent misrepresentation is

Accepted Answer

A) a defamatory statement. 
B) a statement that is fraudulent. 
C) a statement that is made by one party to another and induces the other person to engage in negligent acts. 
D) a statement that insults another. 
E) an incorrect statement that is made without due care for its accuracy. 
A) a defamatory statement. 
B) a statement that is fraudulent. 
C) a statement that is made by one party to another and induces the other person to engage in negligent acts. 
D) a statement that insults another. 
E) an incorrect statement that is made without due care for its accuracy.

Question 13

Alice Walters is a patient of Dr.John Good,a heart surgeon.Dr.Good had just begun to tell Alice that her treatment wasn't working and that she would need to have surgery to correct a defect in her heart,but then he was called away on an emergency and forgot to return to his conversation with Alice and explain all of the risks of the surgery to her.In fact,Dr.Good had diagnosed Alice's condition three years ago after returning to work from his office Christmas party.He had had a number of alcoholic beverages,and this caused him to misinterpret a lump on her lung for a lump on her heart.After diagnosing Alice,Dr.Good had told Alice that the problem was with her heart and then prescribed treatment for it.Relying on what Dr.Good had told her,Alice had accepted the treatment,which was very painful.In this situation,it can be said that

Accepted Answer

A) Dr.Good made a negligent misrepresentation about the nature of Alice's problem and the treatment for it. 
B) Dr.Good was negligent in his diagnosis. 
C) Dr.Good failed to obtain from Alice an informed consent. 
D) Dr.Good committed a breach of contract in misdiagnosing Alice's condition. 
E) all of the above 
A) Dr.Good made a negligent misrepresentation about the nature of Alice's problem and the treatment for it. 
B) Dr.Good was negligent in his diagnosis. 
C) Dr.Good failed to obtain from Alice an informed consent. 
D) Dr.Good committed a breach of contract in misdiagnosing Alice's condition. 
E) all of the above

Question 14

Damages for breach of fiduciary duty and breach of contract are based on the same principle.Explain.

Accepted Answer

In both breach of contract and breach of

Question 15

What is a fiduciary duty?

Accepted Answer

A fiduciary duty is a duty tha

Question 16

Like any other standard of care,the standard of care for professionals evolves and changes as the law evolves and changes.

Accepted Answer

A) True 
 B)False

Question 17

What is a multi-disciplinary partnership?

Accepted Answer

A multi-disciplinary partnersh

Question 18

Deciding on the type of action to bring for acts or omissions of a professional who breached a duty of care was not always easy,but this has changed.Explain.

Accepted Answer

At one time considerations such as the d

Question 19

Which is easier to prove,fraudulent or negligent misrepresentation? Why?

Accepted Answer

Fraudulent misrepresentation requires pr

Question 20

Which of the following is true?

Accepted Answer

A) The ordinary standard of care for ordinary negligence,is appropriate when judging the work of a professional. 
B) Complying with normal professional standards is always an adequate defence. 
C) Causation in professional-client relationships is not based on reliance. 
D) A professional who exhibits the degree of skill and knowledge that is commensurate with a particular task will be held to have met the required standard even if the advice given is wrong. 
E) The duty to take reasonable care does not include omissions. 
A) The ordinary standard of care for ordinary negligence,is appropriate when judging the work of a professional. 
B) Complying with normal professional standards is always an adequate defence. 
C) Causation in professional-client relationships is not based on reliance. 
D) A professional who exhibits the degree of skill and knowledge that is commensurate with a particular task will be held to have met the required standard even if the advice given is wrong. 
E) The duty to take reasonable care does not include omissions.

Exam 5: Professional Liability: the Legal Challenges

A fiduciary duty may exist in the absence of a contractual duty.

If a client sues a professional for failing to exercise reasonable care in giving advice,but the client has suffered no damage as a result,the professional will not be liable.

Use the fact situation in Q6 to answer the related question that follows. In this situation,if the value of the company increases substantially so that Carol makes money on her investment,

Explain what is meant by the "duty to account" of a professional who has committed a breach of trust.

Where a professional undertakes a task that is beyond the usual skills of his or her profession,

What is a conflict of interest?

If the plaintiff has suffered no damages,a defendant who has breached a fiduciary duty will not be held liable.

What is deceit?

A fiduciary duty exists between a professional and his or her client when

The greater exposure of professionals to liability for professional negligence has led to the extensive use of

A misrepresentation is

Negligent misrepresentation is

Damages for breach of fiduciary duty and breach of contract are based on the same principle.Explain.

What is a fiduciary duty?

Like any other standard of care,the standard of care for professionals evolves and changes as the law evolves and changes.

What is a multi-disciplinary partnership?

Deciding on the type of action to bring for acts or omissions of a professional who breached a duty of care was not always easy,but this has changed.Explain.

Which is easier to prove,fraudulent or negligent misrepresentation? Why?

Which of the following is true?

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

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