Exam 5: Negligence, Professional Liability, and Insurance

Sam and John drank beer and watched the Olympics for hours. When John left, he did not feel impaired, but the alcohol in his system affected his driving. He lost control of his car, which crashed through Mr. Mitsu's fence and into Mr. Mitsu's garage. Mitsu's neighbour, Mr. Watson, called the police. John was charged with driving while impaired and was found guilty in the criminal proceedings. Given these facts, which of the following is true?

Joe was driving his automobile when Sam came from a side street and went through a stop sign without stopping, almost causing an accident. Joe swerved to avoid Sam and was successful in doing so. He wrote down Sam's licence number and sued Sam for his negligent driving. Indicate the expected result.

Explain what is meant by an insurable interest and what impact the existence of this principle has on the right to collect on an insurance claim.

Some jurisdictions have instituted "no fault" insurance programs. Which of the following statements is true?

A person has to prove only that another caused his injury to succeed in a negligence action.

Explain what must be established in order to succeed in a negligence action.

Which of the following is not an appropriate matter for insurance coverage?

Which of the following situations could result in a successful action for negligence?

What test is used to determine the standard of care?

Explain under what circumstances the remoteness test can be used in a negligence action.

Insurance agents owe important obligations to their principals, but do not owe any specific duty to their customers.

To win his action in negligence against a professional person, the plaintiff must prove, among other things, that the defendant's conduct was below an acceptable standard of care. Which of the following is the legal standard of care demanded of a professional person?

A land appraiser prepared an appraisal of a property for a real-estate development company. The appraiser had been told that the appraisal would be used by the company to attract potential investors. Because the appraiser forgot to check the recent changes in the zoning by-laws, the appraisal was not accurate; the investor, a party unknown to the appraiser, was misled about the value of the land and, consequently, suffered a financial loss. On these facts, which of the following is true?

Does a shareholder have an insurable interest in the assets of a corporation?

Stella bought a cup of coffee at the drive-through window at a coffee shop. Holding the cup between her knees and attempting to take off the lid to add cream, she spilled the coffee. She suffered burns to her thighs. If this happened in Canada, which of the following would be true?

When there is ambiguity in the meaning of a limitation clause in an insurance contract, the courts defer to the party who drafted the contract.