Exam 5: Negligence, Professional Liability, and Insurance

In Canada,in order for a manufacturer to be held liable for injury caused by his product to an ultimate consumer,what must be shown?

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.

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

What is the test used for physical causation?

Jack works as a financial-planning consultant for Adco Ltd.,a company that provides financial advice to its clients.At a three-martini lunch with Benson,one of Adco's clients,and Carson,a friend of Benson's,Jack mistakenly advised Benson to buy shares of Moose Jaw Mining because he thought that Adco had investigated the prospects of the company.In fact,Adco had investigated Goose Jaw Mining and was recommending it to its clients.As it turned out,Benson ignored Jack's advice but Carson bought a lot of Moose Jaw shares and lost all of his money when the mining operation went broke.Which one of the following statements accurately describes Carson's legal situation?

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

An insurance company's right to subrogation refers to their right to refuse to pay where the insured is responsible for his own loss.

Historically,how did the law treat negligent misstatement differently than negligent misconduct?

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 that 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?

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

What is an insurable interest?

The provincial government thought that the only way to make businesses competitive with those from other countries was to make more information available to them about market conditions,currencies,etc.,around the world.It began a program of incentives that included a government office that would give people not only the business information but also advice on how the businesses could link up to the government's database that held the updated information.Mr.Su relied on some information given to him by Alex Chec,an employee of the government.The information was wrong due to a mistake made by an operator entering data.It was Mr.Chec's job to cross-check that information before it was released to the public.He forgot to do it.Mr.Su suffered a $10 000 loss because of the error.Which of the following is true?

People who see a child drowning have no duty in tort law to rescue that child,unless a particular relationship exists.This is an example of:

Often,a business suffering a loss from a fire will have insurance to cover the property damage,but there will be nothing to cover the losses the business suffers during the period it is closed down for repairs.What form of insurance will cover the latter issue?

Explain under what circumstances remoteness can be used as a defence in a negligence action.

Death is inevitable,and so insurance pay-outs are calculated on the basis of a prediction of how long a person of a certain age and health can be expected to live.

Business interruption insurance is designed to cover which of the following situations?

The occurrences of professional malpractice actions have decreased dramatically in recent years,due largely to the increased availability of liability insurance.

In Hall v.Hebert,an individual was severely injured when he allowed his intoxicated friend to drive his car.The Supreme Court of Canada had to deal with whether volenti non fit injuria would apply.What did the Court hold?

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.