Exam 5: Negligence, Professional Liability, and Insurance

Innkeepers at common law were required to protect their guests from the wrongful acts of others, even when the innkeeper or servant was not at fault.

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.

Which one of the following explains the effect of a co-insurance clause?

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

Describe three different types of insurance that a business person might obtain in relationship to his business.

Indicate why the Donoghue v. Stevenson case (the snail in the ginger beer bottle) was so important in the development of negligence law.

Two real estate agents, pressed for time, stopped at the bakery for some muffins that would suffice as lunch. John bought the muffins and gave one to Mary. They both began to eat the muffins as they hurried to the car. When Mary looked at the muffin she had just bitten, she saw that the raisins had little worms in them. John's muffins were the same-with little worms. Based on these facts, which of the following possibilities is true? (Read each independently from the others.)

Joe owned a house that would cost $200,000 to replace. He took out an insurance policy for only $100,000, reasoning that any damage that would take place would likely be under that amount. In fact, there was a fire and the total loss was $50,000. Indicate what problems Joe might run into when he tries to collect.

Explain the importance of the distinction between an invitee, licensee, and trespasser.

A surety bond provides assurance that the party to a contract will perform its part of the contract.

Raheel wants to sue a manufacturer who he believes was careless during the manufacturing process. What do the courts do to make this easier on people like Raheel?

The forfeiture rule will not allow a criminal to profit from a crime, but does not affect those claiming through the criminal's estate.

Which of the following statements is correct with respect to bonding?

Explain the potential liability faced by professionals and how the risks associated with such liability can be minimized.

In determining duty, what kind of factors would the court take into consideration in determining whether the defendant lived up to the standard of a reasonable person?

Explain what is meant by an insurable interest.

Which of the following situations could not result in a successful action for negligence?

In which of the following would the plaintiff not succeed in an action for negligence?

Property insurance should correspond to the actual value of the property for all of the following reasons except

To have the schools valued for insurance purposes, a school district hired a firm of surveyors to give them a statement of value. To prepare the report, the surveyors took the relevant measurements, which were then given to a statistical tabulating company that does the calculations based on the measurements. Surveyors always use the services of such tabulating companies. An error was made in the calculations, so the surveyor's report was wrong. Therefore, the buildings were under-insured. When one of the school buildings was destroyed by fire, the school district did not get sufficient funds from the insurance company to rebuild the school. On these facts, which of the following is true? (Assume that the school district has the ability to sue and be sued in court.)