Question 1

A lawyer who enters into a contact to purchase his or her client's summer cottage has

Accepted Answer

A) lots of money. 
B) committed a breach of contract. 
C) a conflict of interest. 
D) a duty not to bargain with the client for the best price. 
E) lots of time on her or his hands. 
A) lots of money. 
B) committed a breach of contract. 
C) a conflict of interest. 
D) a duty not to bargain with the client for the best price. 
E) lots of time on her or his hands.

Question 2

The duties of professionals may be categorized as

Accepted Answer

A) fiduciary,duty in tort,and duty to employees. 
B) contractual,duty to employees,and duty in tort. 
C) duty in tort,business duty,and contractual duty. 
D) general duty,contractual duty,and duty in tort. 
E) contractual,fiduciary and duty in tort. 
A) fiduciary,duty in tort,and duty to employees. 
B) contractual,duty to employees,and duty in tort. 
C) duty in tort,business duty,and contractual duty. 
D) general duty,contractual duty,and duty in tort. 
E) contractual,fiduciary and duty in tort.

Question 3

The contractual duty of a professional contains a promise

Accepted Answer

A) to perform the services with due care. 
B) to accept payment rendered for services. 
C) to work for the client. 
D) to engage other agents in pursuance of the contract. 
E) to submit invoices denominated in Canadian dollars only. 
A) to perform the services with due care. 
B) to accept payment rendered for services. 
C) to work for the client. 
D) to engage other agents in pursuance of the contract. 
E) to submit invoices denominated in Canadian dollars only.

Question 4

Generally speaking,all professional organizations have a number of the same responsibilities.

Accepted Answer

A) True 
 B)False

Question 5

Damages for breach of fiduciary duty is restitutionary in that

Accepted Answer

A) the breach is not a tort. 
B) the breach is not a breach of contract. 
C) the client may be contributorily negligent. 
D) the client is entitled to be placed in the position he or she would have been had the breach not occurred. 
E) the professional is required to give back what she or he has taken from the client. 
A) the breach is not a tort. 
B) the breach is not a breach of contract. 
C) the client may be contributorily negligent. 
D) the client is entitled to be placed in the position he or she would have been had the breach not occurred. 
E) the professional is required to give back what she or he has taken from the client.

Question 6

What is a fiduciary duty?

Accepted Answer

A fiduciary duty is a duty tha

Question 7

A professional must not place him or herself in a position where his or her interest and duty conflict.Explain.

Accepted Answer

A professional person is usually said to

Question 8

The essence of causation in professional-client relationships is the suffering of harm or damage.

Accepted Answer

A) True 
 B)False

Question 9

Liability for breach of a fiduciary duty may arise even where there has been no negligence.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

In a lawsuit alleging negligent misrepresentation the plaintiff must establish more than a breach of duty causing loss.Identify the five requirements for proving negligent misrepresentation as set by the Supreme Court of Canada.

Accepted Answer

The five requirement

Question 12

Use this fact situation to answer the related questions that follow. Henry Jones is the sole shareholder of Happy Go Lucky Company (HGLC).Henry,needing a loan from his bank,went to his accountant,Bob Wallice,and asked him to prepare a financial statement of the company that Henry could give to the bank to get the loan.Unfortunately,Mr.Wallice included certain property that did not belong to the company,which increased its value.When Henry took the financial statement to the bank,the bank caught the error,but made Henry guarantee the loan.The bank then told Mr.Wallice,who forgot to correct the error in the financial statement.A few days later,Henry decided he needed to invest more money in his company and began negotiations with a business associate,Carol Hill.When Carol asked for the financial statement of the company,Henry told her she could get it from the bank or from his accountant.Carol decided to go to the bank,which gave her the financial statement with the error in it.Based on the financial statement,Carol invested $50 000.00 in the company,only to realize a month later the problem with the financial statement the bank had given to her.
In this situation,

Accepted Answer

A) Mr.Wallace owed a fiduciary duty to Carol. 
B) the bank owed a fiduciary duty to Carol. 
C) Mr.Wallace owed a fiduciary duty to Harry. 
D) Mr.Wallace owed a fiduciary duty to the bank. 
E) all of the above 
A) Mr.Wallace owed a fiduciary duty to Carol. 
B) the bank owed a fiduciary duty to Carol. 
C) Mr.Wallace owed a fiduciary duty to Harry. 
D) Mr.Wallace owed a fiduciary duty to the bank. 
E) all of the above

Question 13

The duty of a professional to take reasonable care does not include a duty not to omit essential matters.

Accepted Answer

A) True 
 B)False

Question 14

A conflict of interest can be said to arise

Accepted Answer

A) where a professional represents two or more parties,each of whom has an opposing interest. 
B) when a client's interest conflicts with the interest of another person represented by the same professional. 
C) where a client's interest conflicts with the interest of the professional representing the client. 
D) where a professional represents two parties,each of whom has a competing interest. 
E) all of the above 
A) where a professional represents two or more parties,each of whom has an opposing interest. 
B) when a client's interest conflicts with the interest of another person represented by the same professional. 
C) where a client's interest conflicts with the interest of the professional representing the client. 
D) where a professional represents two parties,each of whom has a competing interest. 
E) all of the above

Question 15

Use the fact situation in Q6 to answer the related question that follows. In this situation,the preparation of the financial statement by Mr.Wallice,the accountant,constituted

Accepted Answer

A) negligent misrepresentation only. 
B) breach of contract only. 
C) negligence only. 
D) negligence,breach of contract and negligent misrepresentation. 
E) only negligence and breach of contract. 
A) negligent misrepresentation only. 
B) breach of contract only. 
C) negligence only. 
D) negligence,breach of contract and negligent misrepresentation. 
E) only negligence and breach of contract.

Question 16

Brayden had a long history of intestinal disorder.After several failed non-invasive treatments,it was suggested to him that he undergo a colonoscopy as a means of better diagnosing his problem.He spent five minutes prior to the procedure consulting with the doctor who performed the colonoscopy.He was told by the doctor that these procedures usually are simple and for the most part problem-free.Brayden agreed to undergo the procedure.During the course of the colonoscopy his bowel was perforated and he was required to undergo a significant open surgical procedure to save his life.Brayden sued the doctor for lack of informed consent.At trial,the expert evidence established that the risks of bowel perforation were material risks and as such ought to have been disclosed.Brayden in fact testified that had he been told of the risk of bowel perforation he would have not undergone the colonoscopy.However,the judge hearing the case made a finding that a reasonable person with Brayden's condition having been properly informed of all the risks would have undergone the colonoscopy.In these circumstances,the judge will likely then proceed to

Accepted Answer

A) allow the action because of lack of informed consent. 
B) allow the action because of the fact that Brayden himself testified he would not have undergone the procedure had he been told of the risks of bowel perforation. 
C) dismiss the action because a reasonable person in the position of the plaintiff would have proceeded with the colonoscopy had they been informed of the materials risks. 
D) dismiss the action because there is no causation. 
E) allow the action because Brayden had to undergo an unexpected and unanticipated life-saving surgery. 
A) allow the action because of lack of informed consent. 
B) allow the action because of the fact that Brayden himself testified he would not have undergone the procedure had he been told of the risks of bowel perforation. 
C) dismiss the action because a reasonable person in the position of the plaintiff would have proceeded with the colonoscopy had they been informed of the materials risks. 
D) dismiss the action because there is no causation. 
E) allow the action because Brayden had to undergo an unexpected and unanticipated life-saving surgery.

Question 17

Use the fact situation in Q6 to answer the related question that follows. In this situation,the bank's conduct in giving the erroneous financial statement to Carol constituted

Accepted Answer

A) a breach of contract only. 
B) a negligent misrepresentation. 
C) a fraudulent misrepresentation. 
D) negligence only. 
E) neither negligence,no breach of contract or negligent misrepresentation. 
A) a breach of contract only. 
B) a negligent misrepresentation. 
C) a fraudulent misrepresentation. 
D) negligence only. 
E) neither negligence,no breach of contract or negligent misrepresentation.

Question 18

A duty to account is

Accepted Answer

A) the duty of the court to examine the accounts of a professional who is accused of having misappropriated funds. 
B) the duty of a professional to submit timely and accurate bills to the client for payment. 
C) the duty owed by a person who commits a breach of trust to hand over profits made as a result of the breach. 
D) the duty of a client to pay bills that are rendered by the professional. 
E) the duty of the professional to maintain accurate accounts of the invoices submitted to his or her client. 
A) the duty of the court to examine the accounts of a professional who is accused of having misappropriated funds. 
B) the duty of a professional to submit timely and accurate bills to the client for payment. 
C) the duty owed by a person who commits a breach of trust to hand over profits made as a result of the breach. 
D) the duty of a client to pay bills that are rendered by the professional. 
E) the duty of the professional to maintain accurate accounts of the invoices submitted to his or her client.

Question 19

What is the difference between negligent misrepresentation and fraudulent misrepresentation?

Accepted Answer

A negligent misrepresentation is an inco

Question 20

A lawyer who enters into a business transaction with a client and neglects to inform the client that his credit rating is poor may be found to be

Accepted Answer

A) in breach of the law that governs lawyers. 
B) in breach of his or her duty to inform the client. 
C) in breach of contract. 
D) in breach of the common law. 
E) in breach of his or her fiduciary duty. 
A) in breach of the law that governs lawyers. 
B) in breach of his or her duty to inform the client. 
C) in breach of contract. 
D) in breach of the common law. 
E) in breach of his or her fiduciary duty.

Exam 5: Professional Liability: the Legal Challenges

A lawyer who enters into a contact to purchase his or her client's summer cottage has

The duties of professionals may be categorized as

The contractual duty of a professional contains a promise

Generally speaking,all professional organizations have a number of the same responsibilities.

Damages for breach of fiduciary duty is restitutionary in that

What is a fiduciary duty?

A professional must not place him or herself in a position where his or her interest and duty conflict.Explain.

The essence of causation in professional-client relationships is the suffering of harm or damage.

Liability for breach of a fiduciary duty may arise even where there has been no negligence.

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

In a lawsuit alleging negligent misrepresentation the plaintiff must establish more than a breach of duty causing loss.Identify the five requirements for proving negligent misrepresentation as set by the Supreme Court of Canada.

The duty of a professional to take reasonable care does not include a duty not to omit essential matters.

A conflict of interest can be said to arise

Use the fact situation in Q6 to answer the related question that follows. In this situation,the preparation of the financial statement by Mr.Wallice,the accountant,constituted

Use the fact situation in Q6 to answer the related question that follows. In this situation,the bank's conduct in giving the erroneous financial statement to Carol constituted

A duty to account is

What is the difference between negligent misrepresentation and fraudulent misrepresentation?

A lawyer who enters into a business transaction with a client and neglects to inform the client that his credit rating is poor may be found to be

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