Exam 5: Negligence, Professional Liability, and Insurance

For his Superbowl Sunday party, Jack bought, among other things, some Francisco mustard. Even before the game began, one of the guests, Fred, made himself a sandwich using that mustard. When Fred saw another guest, Tad, making a sandwich with the mustard, Fred warned him that the sandwich did not taste right and that he (Fred) didn't feel too well. Tad ate everything else on his plate, but left the sandwich. Fred became quite ill and had to go to the hospital. It was determined that the mustard was contaminated when it was made. Jack had bought the mustard just an hour before game time from Big Store, which had bought it from DB Distributors Ltd., which had bought it from the manufacturer New Foods Ltd. On these facts, which of the following is true?

What is the role of an adjuster?

Once it has paid out on the loss, an insurance company can step into the shoes of the insured and pursue a claim against the person who caused the loss.

In Hodgkinson v. Simms, an accountant advised a client to invest in a real estate development while also acting for the developers. What did the Supreme Court of Canada find?

________ is the type of insurance most closely associated with torts.

Explain what is meant by bonding.

Give three examples where tort standards have been modified by legislation.

Distinguish between misfeasance and nonfeasance.

The institution of no-fault insurance programs in some jurisdictions allows people to be compensated for their injuries only if they are not at fault.

Joe was a customer in Sam's store when he carelessly dropped a very expensive vase, but he was relieved when he found that Sam had insurance to cover the loss. Explain Joe's legal position in these circumstances.

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?

Sumanthra, an accountant, prepared financial statements for ZeeTech Ltd. A cutting edge technology company, ZeeTech was actively seeking private investment in order to finance a new electronics device. Despite the fact that Sumanthra followed 38) Sumanthra, an accountant, prepared financial statements for ZeeTech Ltd. A cutting edge technology company, ZeeTech was actively seeking private investment in order to finance a new electronics device. Despite the fact that Sumanthra followed Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), the statements she prepared were misleading. Arif and Alena, both potential investors, relied on the statements Sumanthra had prepared. As a result of their reliance, Arif and Alena both invested in ZeeTech and lost a considerable sum of money. Independently, Arif and Alena decided to sue Sumanthra for their financial loss. Which of the following is true? and International Financial Reporting Standards (IFRAccepted Accounting Principles (GAA

In order for an insurance agreement not to be declared void as an illegal contract, what must be demonstrated?

With respect to limitation clauses in standard form insurance contracts, on what basis do the courts typically interpret clause ambiguity?

Which of the following statements best describes the standard used by the courts to measure socially acceptable behaviour?

In which of the following situations will the insured be able to collect the entire amount of the insurance claimed?

Where a person owns a half interest in a house valued at $200,000 and has insurance on that property in the amount of $400,000, if the house burns down, causing a loss of $100,000, how much will that person collect?

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

What is the typical result when spouses have overlapping extended benefits coverage, such as dental and disability?

________ provides only a benefit upon death, and the premiums are lower than whole life insurance, which provides coverage in the event of death as well as investment potential and retirement income.