Question 1

Which of the following is NOT true?

Accepted Answer

A) A fiduciary duty exists when there is an existing contract between the professional and the client. 
B) The principles for determining damages for breach of contract and breach of fiduciary duty are not necessarily the same. 
C) A fiduciary duty requires that a professional avoid situations that give rise to a conflict of interest. 
D) The existence of a fiduciary duty means that a lawyer cannot,as a general rule,act for a purchaser and vendor at the same time. 
E) A fiduciary duty requires complete fidelity and loyalty to the other party. 
A) A fiduciary duty exists when there is an existing contract between the professional and the client. 
B) The principles for determining damages for breach of contract and breach of fiduciary duty are not necessarily the same. 
C) A fiduciary duty requires that a professional avoid situations that give rise to a conflict of interest. 
D) The existence of a fiduciary duty means that a lawyer cannot,as a general rule,act for a purchaser and vendor at the same time. 
E) A fiduciary duty requires complete fidelity and loyalty to the other party.

Question 2

In the case of breach of fiduciary duty,a defendant may be under a duty to account for any profits derived from the breach as an alternative to damages.

Accepted Answer

A) True 
 B)False

Question 3

James,one of the partners of James & Fiduciary Duty Co.,the auditors of a major Canadian corporation (Canco),is one of the major shareholders of Canco.This situation could result in a

Accepted Answer

A) violation of the statute. 
B) breach of duty. 
C) conflict of interest. 
D) fiduciary duty. 
E) breach of contract. 
A) violation of the statute. 
B) breach of duty. 
C) conflict of interest. 
D) fiduciary duty. 
E) breach of contract.

Question 4

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 5

The Hedley Byrne case establishes the principle of liability to ________ for ________.

Accepted Answer

A) third parties; negligence misrepresentation 
B) clients; breach of fiduciary duty 
C) third parties; tort 
D) friends and relatives; negligence 
E) clients; breach of contract 
A) third parties; negligence misrepresentation 
B) clients; breach of fiduciary duty 
C) third parties; tort 
D) friends and relatives; negligence 
E) clients; breach of contract

Question 6

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.

Question 7

What is a multi-disciplinary partnership?

Accepted Answer

A multi-disciplinary partnersh

Question 8

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 requirements for proving neglig

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Causation is the third condition that must be proven to sustain an action for tort liability.Explain.

Accepted Answer

There are three conditions that must be

Question 11

What is the difference between negligent misrepresentation and fraudulent misrepresentation?

Accepted Answer

A negligent misrepresentation is an inco

Question 12

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 13

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 14

What is a conflict of interest?

Accepted Answer

A conflict of interest is a situation wh

Question 15

A lawyer was retained by a client to defend him on criminal charges.Prior to the trial,the lawyer became aware that the client was in possession of a rare stamp collection.The lawyer was a stamp collector.The lawyer offered to buy the stamp collection for an amount that was less than fair market value.The client agreed and sold the collection.Has the lawyer breached any obligations owed to the client and if so which obligations?

Accepted Answer

A professional's duty extends beyond the

Question 16

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 17

What are professional bodies? Explain the role of professional bodies.

Accepted Answer

Professional organizations are autonomou

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

A professional is

Accepted Answer

A) a person who is licensed by various levels of government. 
B) a person who has a special accreditation or degree from a professional organization. 
C) a person who belongs to a special club. 
D) someone who sets him- or herself out to help the public. 
E) someone who has specialized knowledge and skill on which a client relies and for which a client is prepared to pay. 
A) a person who is licensed by various levels of government. 
B) a person who has a special accreditation or degree from a professional organization. 
C) a person who belongs to a special club. 
D) someone who sets him- or herself out to help the public. 
E) someone who has specialized knowledge and skill on which a client relies and for which a client is prepared to pay.

Exam 5: Professional Liability: the Legal Challenges

Which of the following is NOT true?

In the case of breach of fiduciary duty,a defendant may be under a duty to account for any profits derived from the breach as an alternative to damages.

James,one of the partners of James & Fiduciary Duty Co.,the auditors of a major Canadian corporation (Canco),is one of the major shareholders of Canco.This situation could result in a

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

The Hedley Byrne case establishes the principle of liability to ________ for ________.

Which of the following is TRUE?

What is a multi-disciplinary partnership?

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.

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

Causation is the third condition that must be proven to sustain an action for tort liability.Explain.

What is the difference between negligent misrepresentation and fraudulent misrepresentation?

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

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

What is a conflict of interest?

What are professional bodies? Explain the role of professional bodies.

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

Negligent misrepresentation is

A professional is

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

Filters

The Hedley Byrne case establishes the principle of liability to for .