Question 1

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.

Accepted Answer

The answer of Joe was a customer in Sam's store...

Question 2

Ms. J was severely injured as the result of a fall sustained when a portion of a fence surrounding a private cemetery gave way as she was attempting to climb over to visit a grave site. Which of the following is true with regard to an occupier's liability?

Accepted Answer

A)  The standard of care is set by a federal statute and is therefore the same for all the provinces. 
B)  The standard of care required of the occupier is set by provincial statute. 
C)  An occupier owes no duty of care to a trespasser. 
D)  There is no duty of care owed to persons who come onto another's property whether invited or not; people must take responsibility to look after themselves. 
E)  The duty imposed by the statute is on the landowner not the tenant.

Question 3

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

Accepted Answer

The answer of With respect to limitation clauses in standard...

Question 4

The principle that we must take our victims as we find them is often referred to as ________.

Accepted Answer

The answer of The principle that we must take our...

Question 5

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

Accepted Answer

A)  A person owns a restaurant business and the restaurant is destroyed by fire. The insurance coverage pays for the repair of the building. 
B)  A person has a partner in his restaurant business and that partner catches a disease and dies. The insurance provides for coverage of the death of the partner. 
C)  A person owns a restaurant business and the restaurant is destroyed by fire. The insurance covers revenue losses caused by the business being closed down for several months. 
D)  A person is an employee at a restaurant business and gets ill. The insurance coverage pays him his wages while he is off work sick. 
E)  A person operates a restaurant business and some customers suffer injury due to food poisoning. The insurance coverage provides for payment to cover any losses incurred because of claims by the restaurant arising from damages paid out to these customers.

Question 6

Indicate under what circumstance the defence of voluntary assumption of risk or volenti will be available.

Accepted Answer

The answer of Indicate under what circumstance the defence of...

Question 7

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

Accepted Answer

The answer of In order for an insurance agreement not...

Question 8

Distinguish between a licensee, an invitee, and a trespasser.

Accepted Answer

The answer of Distinguish between a licensee, an invitee, and...

Question 9

Death is inevitable, and so life 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.

Accepted Answer

A) True 
 B)False

Question 10

What is the reasonable foreseeability test used for?

Accepted Answer

The answer of What is the reasonable foreseeability test used...

Question 11

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?

Accepted Answer

A)  The plaintiff assumed neither the physical risk nor the legal risk in the circumstances. 
B)  The plaintiff assumed only the legal risk, but this is all that is required for volenti non fit injuria to apply. 
C)  The plaintiff assumed only the physical risk, but this is all that is required for volenti non fit injuria to apply. 
D)  The plaintiff assumed the physical risk, but there was no indication he had assumed the legal risk as well. 
E)  The plaintiff assumed the legal risk, but there was no indication he had assumed the physical risk as well.

Question 12

A principle established in Donoghue v. Stevenson is the test used to determine the standard of care that must be exercised by the defendant to escape liability.

Accepted Answer

A) True 
 B)False

Question 13

A reasonable person is one who is prudent and careful.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

The answer of Describe three different types of insurance that...

Question 15

How is negligent misstatement treated in Canada today?

Accepted Answer

The answer of How is negligent misstatement treated in Canada...

Question 16

What is the test used for legal causation?

Accepted Answer

The answer of What is the test used for legal...

Question 17

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?

Accepted Answer

The answer of In determining duty, what kind of factors...

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is correct with respect to the meaning of an insurable interest?

Accepted Answer

A)  An insurable interest means that the person causing the loss is required to show enough interest in what he is doing to be careful. 
B)  The insurance company must have received a premium before it can be said to have an interest in the agreement and be bound to pay when a claim is made. 
C)  The beneficiary or person receiving payment must have an ownership interest in the thing being insured. 
D)  The person taking out the insurance contract must be in a position that he will suffer a loss if the insured-against event occurs. 
E)  This term describes when a person has taken out insurance on something.

Question 20

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

Accepted Answer

A)  Jane had a compact disc player worth $300. It was portable and it was stolen from her car. She had a house policy and a car policy, both of which provided coverage. Jane claimed $300 from each policy. 
B)  Joe has his house insured for $100,000 when the actual value of the house is $200,000. When it burns down, Joe claims $200,000. 
C)  Joe owns a house on a lot in Regina, and although the property would sell for $100,000, the value of the house is only $50,000. Joe takes out a $50,000 policy against loss to the house, which is subsequently destroyed by fire. Joe claims $50,000. 
D)  Joe and his wife both own a one-half interest in their house, worth $100,000. Joe took out an insurance policy in his own name for the $100,000 and the house is destroyed by fire. Joe claims the $100,000. 
E)  Joe takes out insurance on his neighbour's house for $50,000 because his neighbour is notoriously careless. Sure enough, the house burns down with $50,000 loss.

Exam 5: Negligence, Professional Liability, and Insurance

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.

Ms. J was severely injured as the result of a fall sustained when a portion of a fence surrounding a private cemetery gave way as she was attempting to climb over to visit a grave site. Which of the following is true with regard to an occupier's liability?

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

The principle that we must take our victims as we find them is often referred to as ________.

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

Indicate under what circumstance the defence of voluntary assumption of risk or volenti will be available.

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

Distinguish between a licensee, an invitee, and a trespasser.

Death is inevitable, and so life 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.

What is the reasonable foreseeability test used for?

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?

A principle established in Donoghue v. Stevenson is the test used to determine the standard of care that must be exercised by the defendant to escape liability.

A reasonable person is one who is prudent and careful.

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

How is negligent misstatement treated in Canada today?

What is the test used for legal causation?

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?

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 correct with respect to the meaning of an insurable interest?

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