Exam 5: Negligence, Professional Liability, and Insurance

Which of the following statements describes the standard expected of experts?

____________ 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.

Mr.Reasoner was looking out his livingroom window and saw his next-door neighbour,Jon Bon,trying to burn leaves.Bon threw gasoline on the damp leaves,and when he lit a match,there was an explosion that sent flames in every direction.Luckily,no one was around,and the flame that shot onto Reasoner's property caused no harm whatsoever.Reasoner was upset by this carelessness and sued Bon for negligence.Which of the following is the best argument for the defendant Bon?

The standard of care that is required of a professional in a negligence action is that she acts to the best of her ability.

Which of the following is true with respect to the law of tort?

Although there was no carelessness on the part of Mr.Tam,and although he had no intention of harming anyone,he could still be sued by someone harmed by dangerous substances that escaped from his property.This is an example of what tort or what principle of tort law?

In which of the following cases is a duty not owed?

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.)

A recent innovation in the industry is joint and several liability where several types of liability are bundled together,allowing the insured higher limits of coverage for a more economical premium.

Explain how the standard of care imposed varies when particular expertise is involved (e.g.,a doctor).

There need not be negligence or some other basis for liability on the part of the insured for the insurer to pay out on the policy.

Creative Farming Ltd.manufactures fertilizer from organic matter,a by-product of which is explosive methane gas.During the processing,some of this gas escaped and drifted onto the adjacent property,where it caused an explosion,extensively damaging a building owned by XYZ Co.Creative Farming Ltd.would be liable for the loss under which one of the following principles?

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

Discuss the development of legal liability for negligent misstatement,and how and why the approach to negligent misstatement differs from the approach to negligent conduct.

Joe operated a game farm in the suburbs of a large city.He had taken all reasonable precautions to keep the animals,some of which were dangerous,within the confines of that game farm.One night,a group of protesters came onto the property,releasing all the animals as an act of protest against the incarceration of such wild creatures.One of the animals,a cougar,went onto a neighbour's property and killed a pet dog before it could be killed.That neighbour sued Joe.Explain his likelihood of success.

At common law,a mother owes a duty of care to an unborn child.

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

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

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 the 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,a concert pianist,was walking down the street when he was struck by Harry,a careless skate boarder,knocking him down and crushing his hand.When Joe sued Harry for his negligence,claiming the loss of income from his profession (he could never play the piano again),Harry countered with the defence that there is no way he could have anticipated that the person he was going to hit was a concert pianist.Explain his likelihood of success raising this defence.