Question 1

A misrepresentation is

Accepted Answer

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

Question 2

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 3

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 4

James has an agreement with his accountant. James can sue his accountant

Accepted Answer

A)  in contract and in tort; and for breach of fiduciary duty. 
B)  in both contract and tort. 
C)  in tort. 
D)  in contract and for breach of fiduciary duty. 
E)  in contract. 
A)  in contract and in tort; and for breach of fiduciary duty. 
B)  in both contract and tort. 
C)  in tort. 
D)  in contract and for breach of fiduciary duty. 
E)  in contract.

Question 5

A duty to account is

Accepted Answer

A)  the duty of a client to pay bills that are rendered by the professional. 
B)  the duty of the professional to maintain accurate accounts of the invoices submitted to his or her client. 
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 the court to examine the accounts of a professional who is accused of having misappropriated funds. 
E)  the duty of a professional to submit timely and accurate bills to the client for payment. 
A)  the duty of a client to pay bills that are rendered by the professional. 
B)  the duty of the professional to maintain accurate accounts of the invoices submitted to his or her client. 
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 the court to examine the accounts of a professional who is accused of having misappropriated funds. 
E)  the duty of a professional to submit timely and accurate bills to the client for payment.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A professional is

Accepted Answer

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

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

A multi- disciplinary partnership is

Accepted Answer

A)  a limited partnership. 
B)  a partnership of persons in the same profession who have different specializations. 
C)  a partnership whose members have been disciplined for misconduct. 
D)  a partnership between two or more persons who belong to the same profession. 
E)  a partnership between two or different persons who belong to different professions. 
A)  a limited partnership. 
B)  a partnership of persons in the same profession who have different specializations. 
C)  a partnership whose members have been disciplined for misconduct. 
D)  a partnership between two or more persons who belong to the same profession. 
E)  a partnership between two or different persons who belong to different professions.

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Negligent misrepresentation is

Accepted Answer

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

Question 15

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

Accepted Answer

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

Question 16

The major professions are governed by members of parliament.

Accepted Answer

A) True 
 B)False

Question 17

A professional may owe a duty of care in tort to someone other than the client.

Accepted Answer

A) True 
 B)False

Question 18

James is a used car salesperson. He tells Mary that the vehicle he is selling to her has a new engine. James knows that what he is saying is not true. James could be liable for

Accepted Answer

A)  breach of fiduciary duty. 
B)  defamation. 
C)  breach of contract. 
D)  negligence. 
E)  fraudulent misrepresentation. 
A)  breach of fiduciary duty. 
B)  defamation. 
C)  breach of contract. 
D)  negligence. 
E)  fraudulent misrepresentation.

Question 19

What is a conflict of interest?

Accepted Answer

A conflict of interest is a situation wh

Question 20

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

Exam 4: Professional Liability

A misrepresentation is

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

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

James has an agreement with his accountant. James can sue his accountant

A duty to account is

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

A professional is

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

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

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 multi- disciplinary partnership is

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

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

Negligent misrepresentation is

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

The major professions are governed by members of parliament.

A professional may owe a duty of care in tort to someone other than the client.

James is a used car salesperson. He tells Mary that the vehicle he is selling to her has a new engine. James knows that what he is saying is not true. James could be liable for

What is a conflict of interest?

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.

Law and Society

The Machinery of Justice

The Law of Torts

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

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

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

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

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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