Question 1

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 2

In a lawsuit against a professional for a breach of duty of care,a prudent plaintiff should

Accepted Answer

A) sue in contract for breach of contract for failure to properly perform services. 
B) sue in tort for breach of fiduciary duty. 
C) sue in tort for negligence arising from a breach of duty of care. 
D) sue in tort for negligence arising from a breach of duty of care and in contract for breach of contract for failure to properly perform services. 
E) sue in contract for negligence arising from a breach of duty of care and sue for breach of fiduciary duty. 
A) sue in contract for breach of contract for failure to properly perform services. 
B) sue in tort for breach of fiduciary duty. 
C) sue in tort for negligence arising from a breach of duty of care. 
D) sue in tort for negligence arising from a breach of duty of care and in contract for breach of contract for failure to properly perform services. 
E) sue in contract for negligence arising from a breach of duty of care and sue for breach of fiduciary duty.

Question 3

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 4

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.

Question 5

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 6

If a fiduciary duty exists,the law imposes additional requirements on a professional beyond those set out in any contract or required under tort law.These requirements include all of the following EXCEPT

Accepted Answer

A) the need to act honestly and in good faith. 
B) the need to act only in the best interests of the client. 
C) the need to reduce to writing all meetings held with the client. 
D) the need to avoid all conflicts of interest. 
E) the need to account for all property held or administered on behalf of the beneficiary. 
A) the need to act honestly and in good faith. 
B) the need to act only in the best interests of the client. 
C) the need to reduce to writing all meetings held with the client. 
D) the need to avoid all conflicts of interest. 
E) the need to account for all property held or administered on behalf of the beneficiary.

Question 7

When a professional is sued on the basis that faulty advice was provided to the client resulting in a loss,the courts will ordinarily hear testimony of practitioners with respect to the proper standard of care.If the court hears evidence that the professional complied with normal professional standards,can the client ever succeed in an action for damages?

Accepted Answer

Establishing standards alone should not

Question 8

What is deceit?

Accepted Answer

Deceit is the intentional maki

Question 9

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 10

Where two professionals have specialized knowledge and skill in the same profession,representation of one by the other negates the usual standard of care for the professional who is representing the other.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

Normal standards of care always apply to professionals who undertake a task beyond the usual skills of the profession.

Accepted Answer

A) True 
 B)False

Question 14

Professionals may have liability to their clients in tort and contract,and for breach of fiduciary duty.Briefly explain the basis for liability in these categories.

Accepted Answer

Professionals may be liable for torts co

Question 15

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 16

Although the law has long recognized some professional relationships as inherently fiduciary (such as lawyer-client and doctor-patient),not every professional relationship will be fiduciary in nature.Explain.

Accepted Answer

Many types of relationships involving pr

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Exam 5: Professional Liability: the Legal Challenges

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

In a lawsuit against a professional for a breach of duty of care,a prudent plaintiff should

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

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

The duties of professionals may be categorized as

If a fiduciary duty exists,the law imposes additional requirements on a professional beyond those set out in any contract or required under tort law.These requirements include all of the following EXCEPT

What is deceit?

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

Where two professionals have specialized knowledge and skill in the same profession,representation of one by the other negates the usual standard of care for the professional who is representing the other.

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.

A duty to account is

Normal standards of care always apply to professionals who undertake a task beyond the usual skills of the profession.

Professionals may have liability to their clients in tort and contract,and for breach of fiduciary duty.Briefly explain the basis for liability in these categories.

A misrepresentation is

Although the law has long recognized some professional relationships as inherently fiduciary (such as lawyer-client and doctor-patient),not every professional relationship will be fiduciary in nature.Explain.

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

A conflict of interest can be said to arise

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

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Secured Transactions

Creditors Rights

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