chapter 5

Todd chose to drive down a dark country road late at night with only daytime driving lights lit. Murray, who was driving toward Todd on the same road, also had only daytime driving lights lit.. If a head-on collision occurs between the two drivers, what is the most likely legal outcome? A)There may be two or more people who caused the accident and the court will use a material causation test. B)The court will use the "remoteness" causation test. C)The poorly lit cars show conclusively that both caused the accident and therefore the liability will be split 50/50. D)The court will use the "but for" causation test. E)The poorly lit cars show that both caused the accident and therefore neither is blameworthy.

A

Which of the following is a negligence tort? A)Ken was distracted and his car spun out of control and hit Barb's new car. B)Kerry filled his swimming pool, and left open the access gates to the pool.. C)Stella ordered a coffee, but the restaurant manager chose to make the coffee extra hot. D)Ed decided that he was too busy to shovel his walks, so his walkway was icy. E)Bert chose to walk through a busy cafeteria with a backpack, an armload of books, and a cup of scalding hot coffee.

A

Which of the following situations does not support a negligence suit? A) At the grocery store, Jack slips on a spill carelessly left by an employee and is unharmed. B)Stacey loses her life savings when Peter, a financial planner, advises her to invest in a very shady company. C)Todd, a three year old, is injured when he picks up a knife left on the floor by a babysitter. D)Kevin's car is damaged when Mary hits it from behind because she was not paying attention. E)Kelsey's house burns down when Carl carelessly tosses a lit cigarette into a pile of leaves next to her home.

A

Which of the following statements describes the standard expected of experts? A) They require skills and abilities expected of an average person. B) They must exercise skill with the degree of care expected of a reasonable person in that profession. C) Inexperience excuses incompetence. D) The standard of an expert needs to be perfection. E) Common practice always sets the appropriate standard

A

Which of the following statements with regard to the tort of negligence is true? A) A possible defense to the plaintiff's claim of negligence is that the plaintiff volunteered to take the risk. B) If physical injury can be foreseen as the result of a person's actions, the wrongdoer will not be liable for all injury suffered. C) If the court finds contributory negligence, the defendant has no liability at all. D) If a person is injured by a defective product that he himself did not purchase, he cannot sue the manufacturer for negligence. E) The test used to determine whether a duty of care is owed is this: Would a below- average person foresee that the plaintiff could be affected by the acts of the defendant?

A

Which of the following statements with regard to the tort of negligence is false? A) A possible defence to the plaintiff's claim of negligence is that the plaintiff volunteered to take the risk. B) If physical injury can be foreseen as the result of a person's actions, the wrongdoer will not be liable for all injury suffered. C) If the court finds contributory negligence, the defendant has no liability at all. D) If a person is injured by a defective product that he himself did not purchase, he cannot sue the manufacturer for negligence. E) The test used to determine whether a duty of care is owed is this: Would a below-average person foresee that the plaintiff could be affected by the acts of the defendant?

A

Manufacturers in Canada have which of the following defences to a product liability negligence action? A)The manufacturer assumed the person using the product in a normal manner contributed to his own damages. B)Sometime between the production of the product and the consumer who was harmed by it, there was an intervening inspection or modification of the product. C)The manufacturer has a waiver of liability agreement with the distributor of the product. D)The product was in its original packaging. E)The manufacturer assumed the risk that persons could be harmed by the product.

B

Which one of the following statements is the most accurate description of the law of standard of care? a.The standard of care for all people under 18 years of age is the same. b.Parents could be liable for the torts of their children but only if there was failure of the parent to, for example, supervise unruly children adequately. c.A legal standard of care guarantees that a person will be compensated if injured. d.Standards of care never change because there must be predictability in the law. e.The standard of care for all medical doctors is that of a reasonably prudent general medical practitioner.

B

A company fails to properly install a ceiling. Because of this failure, the ceiling falls on Alex and knocks him unconscious. Ray, who works across the hall, runs into the room to pull Alex out before more damage can be done and is injured by falling debris. Can the company successfully claim it is not liable for Ray's injury? A)Yes. Ray voluntarily assumed the risk when he entered the room. B)Yes, because the company had no previous relationship with Ray C)No. Ray's attempt to save Alex is not considered a voluntary assumption of the risk. D)Yes. Since it was not foreseeable that Ray would enter the room, the company is not liable. E)No. A company is always liable for its negligent actions.

C

David wants to purchase a new television specifically compatible with his new home theatre equipment. He approaches Paul, a salesman at a large electronics store, who makes inquiries respecting his system and advises him that a particular television would be "completely compatible." David makes the purchase, only to discover at home that the television is not compatible at all. If the electronics store refused to reverse the transaction, which of the following scenarios would result in David not being successful in suing Paul or the electronics store for negligence? A)If the electronics store had not sufficiently trained Paul in the products sold B)If Paul had never examined the television's specifications and did not know whether the television would actually be compatible C)If Paul establishes he relied on the manual supplied for the television, which turns out to have been in error D)If Paul establishes David was going to buy the television regardless of what Paul said E)If Paul knew the television would not be compatible

C

Which of the following acts is not one a statute would normally perform? A)State that hotels owe a specific duty of care to their guests B)Create new obligations people are required to meet to prevent liability C)Merely imply the creation of a new tort cause of action D)Declare that both parties share blame in a specific situation E)Expand vicarious liability to a new relationship

C

A negligence action requires that certain ingredients be present in order for the plaintiff to be successful. Which of the following is not an ingredient of negligence? A)Legal causation B)Duty of care of the defendant C)Standard of care of the defendant D)Standard of duty of the plaintiff E)Damages caused by the negligent act

D

Ed has been playing the stock market. He has been purposely buying highly speculative stocks. If Ed loses all of his money, which of the following statements is false? A)Ed cannot sue the stockbroker because Ed voluntarily assumed the risk of losses. Ed knew that the stock market choices were risky. B)Ed cannot sue the stock exchange where he bought his shares. Ed owes a duty of care to himself because it is reasonably foreseeable that he could suffer losses. C)The only person that owes Ed a duty of care in these circumstances is Ed. D)Ed can sue the stockbroker for negligence due to breach of a reasonable person test for stockbrokers. E)The stock market regulator does not owe Ed a duty of care.

D

In which of the following would the plaintiff not succeed in an action for negligence? A) A real estate agent accidentally forgot to lock the back door of the house he had just shown. Before the owner returned, someone broke in and stole the TV. The owner sued the agent. B) Dr. Zotsky used the skill of a reasonable doctor in that field, but the patient did not respond to the treatment and lost sight in one eye. She sued the doctor. C) May was made sick by drinking a contaminated cola bought for her by her friend Fred. She sued the manufacturer. D) A real estate agent failed to check the zoning and assured the purchasers that they could build a duplex on the property. Relying on that statement, they purchased the property. E) Nick was hurt when the driver of a Gino's pizza truck carelessly ran through a yellow traffic light on his way to deliver a pizza. Nick sued the driver and Gino, the driver's employer, although Gino wasn't in the truck.

D

Which of the following describes a situation where there is no insurable interest? A)The wife of a person who has a life insurance policy B)The owner of a car which owes a debt to a bank for a loan on the car C)The owner of a car which has a no-fault collision insurance policy D)A person who insures the assets of a corporation in which he has no stake E)The person whose own life is insured

D

A company manufacturing fertilizer from organic matter, a by-product of which is explosive methane gas, would be liable under If during proccessing, some of this gas escapes and drifts onto the adjacent property, where it causes an explosion. a) Occupiers' Liability Act b) vicarious liability c) contributory negligence d) product liability e) strict liability

E

An insurance policy is often unenforceable if the insured makes A)any material misrepresentation. B)an innocent, material misrepresentation. C)any misrepresentation. D)a knowing and immaterial misrepresentation. E)a knowing, material misrepresentation.

E

In which of the following cases is A duty is not owed when: A) it would be apparent to a prudent person that the conduct was likely to cause injury. B) a person undertakes to rescue someone in danger. C) a person making a misstatement knew that it would be relied on by a member of a group. D) a visitor comes on your property. E)a person sees another in desperate need of assistance

E

Kevin bought a car insurance policy. In addition to the standard public liability and property damages terms set by regulation, Kevin purchased optional coverage that covered a replacement vehicle, trip interruption coverage, and other extras. Kevin did not read any of these terms and relied completely on the insurance agent to help him choose the best policy. If the optional coverage later turns out to have ambiguous terms, what are Kevin's legal rights against the insurer? A)The agent should have read all of the terms to Kevin. B)The ambiguous terms make the whole insurance contract invalid and therefore Kevin will have no recourse. C)Kevin owes a duty to himself to read all of the terms in this circumstance. D)Since Kevin did not read the terms of the insurance contract, he has no remedy. E)Ambiguities in the terms will be resolved in favour of Kevin.

E

The obligation to act in good faith includes a requirement that the insured disclose all pertinent information. Why? A)Because the insurance contract always states the requirement in its terms B)Because the insurer is the more powerful party and wants the information C)Because the insured sought insurance and therefore must be honest D)Because the insurer is entitled to deny coverage if the information is not provided E)Because the insured is the only party with the information that could affect the insurer's rate decision

E

Which of the following statements best describes the standard used by the courts to measure socially acceptable behaviour? A) When you cause injury, you are always liable. B) an average person acting normally C) the best possible response to the circumstance D) a careful person acting to the best of his or her ability E) a reasonably prudent person acting in a careful manner

E

Will decides to set off commercial grade fireworks at his home. He invites his neighbours and friends to watch the show. Ann, who lives next door, does not attend. Will misfires one of the rockets and it hits Ann's roof. The house catches fire and burns down. Did Will owe Ann a duty of care? a.No. Because Ann is only a neighbour, not a friend, Will did not need to consider her before acting. b.Yes, because Ann was invited to the show c.No, because it was only foreseeable that Ann would be injured, not that her home would be destroyed d.No. Since Ann had notice of the fireworks display, she should have taken proper precautions. e.Yes, because it was foreseeable that Ann's home could be damaged by fireworks

E

The insurer's duty to process claims fairly means A)it must process claims within the statutorily mandated period. B)It cannot refuse payment because of a material misrepresentation by the insured. C)it cannot inquire into the circumstances of the loss before paying the claim. D)it must make all payments without question. E)it cannot withhold payments without justification.

Es

What is the negligence of an injured party that contributes to her own loss or injury is known as? a) Contributory negligence b) Last chance doctrine c) Volenti non fit injuria d) Ex turpi causa e) Voluntary assumption of risk

a

A business a)can eliminate all legal risk by purchasing property insurance. b)may be vicariously liable for the negligent acts of its employees. c)rarely is liable for injuries sustained by visitors to its premises. d)is never liable for harmful substances escaping from its premises. e)is almost never liable for injuries caused by defects in the products it sells.

b

Artie Dodger is always looking for an opportunity to make a fast buck. He decided to park his car near a four-way stop. He waited for another driver to fail to come to a complete stop at the stop sign. When that driver started to advance, Artie lurched his vehicle forward, colliding with the other vehicle. Artie then leaped out of the car clasping his neck howling in agony and yelling, "Whiplash!" Based on these facts, what is Artie's insurance company's best defence to Artie's claim? a) There is not enough information to answer the question. b) Artie's forfeiture of the policy c) The other driver's illegal act d) Artie's voluntary assumption of risk e) Artie's contributory negligence

b

Sam and Steve are partners in a profitable lumberyard. If either of them dies, the surviving partner has to pay the estate a half interest in the assets of the business (to buy out the deceased partner's interest). Therefore, Sam and Steve have each taken out life insurance on the other to provide the necessary funds. Steve is involved in a bad car accident and dies. Does the insurer have grounds for refusing to pay the claim? a)No, because Steve was not the cause of his own death b)No, because Sam has an insurable interest in Steve c)Yes, because Sam did not practise utmost good faith with the insurer d)Yes, because the cause of Steve's death is unrelated to the business e)Yes, because Sam does not have an insurable interest in Steve

b

Which of the following statements is true about the legal principle of ex turpi causa? a)The plaintiff's illegal activity will be a complete defence to the plaintiff's claim. b)Generally speaking, the illegal activity must cause the loss suffered by the plaintiff before the principle can be used to deny liability. c)Once the plaintiff has established that the defendant owed a duty to be careful to the plaintiff, negligence has been established. d)This principle allows the court to assign to the plaintiff more than 50% contributory negligence. e)For negligence to apply, not only must there be damage, but damage must be the direct result of the careless conduct.

b

Which one of the following best describes the duty of care required for a successful negligence action? a) We owe a standard of care to the reasonable victim. b) We owe a duty to persons we can reasonably predict could be affected by our actions. c) We owe a standard of care to the reasonable defendant. d) We owe a standard of care to the reasonable person. e) The duty of care is established only by statutes passed by a legislature.

b

A business may be held liable in various ways for its own acts, or the acts of its employees, that cause damage to its customers or clients and to the public in general. As a result, which of the following will a business not normally have liability insurance against? a)Liability for negligent acts and omissions b)Liability for breach of its professional duty of care c)Loss of profit due to interruption of business activities d)Liability for the dangerous state of its premises e)Liability for defective products

c

In which of the following situations will the defence of voluntary assumption of risk apply? a) Mary entered the three-legged race but did not read the waiver of liability form she signed. The form had an unusually onerous clause absolving the event organizer of all liability. b) Jerry visits Julie's home and realizes the front steps are missing but jumps up to the door and walks into Julie's home. c) After reading the manufacturer's waiver, Ed used a very sharp surgeon's scalpel to cut some paper. The scalpel slipped cutting Ed's hands causing serious injury. Ed sued the manufacturer of the scalpel. d) George is intoxicated and knowingly gets into a taxi with another drunken passenger. e) Bob did not read the instructions for assembling his gas barbecue. The barbecue later blew up causing Bob serious injuries.

c

In which of the following situations would causation be found? a)The defendant was juggling knives nearby when a third party's dog bit the plaintiff. b)The plaintiff was falling down a cliff and the defendant did nothing. c)The defendant's car had a burnt-out tail light when the parties collided head on. d)The defendant set fire to the plaintiff's house. e)The defendant robbed a bank. The plaintiff slipped on a puddle of water while leaving the bank after the robbery.

d

Strict liability refers to a)the liability of an employer to compensate for harm caused by an employee. b)injury resulting from the breach of the standard of care. c)the careless causing of an injury to the person or property of another. d)liability that is imposed regardless of fault. e)a wrongful act done to the person or property of another.

d

Various factors affect the assessment of standard of care in a negligence action. Which one of the following is not a correct statement about the factors used to assess the standard of care? a) The expense to achieve an appropriate standard of care in respect of an adult defendant is a relevant consideration. b) Standards of care are dependent in part on the alertness of the individual defendant. c) A minor will have a standard of care that may not be the same as an adult's standard of care. d) If a public official states that his or her conduct that led to injury was justified, then the court will not look any further into the case. e) The skill and understanding of an adult defendant is relevant to assessing the standard of care.

d

What is the difference between intentional torts and unintentional (negligence) torts? a) Negligence actions usually result in awards for exemplary damages, whereas such damages are not available for intentional torts. b) Intentional torts must have proof of actual damages to succeed, whereas negligence torts do not. c) Both can result in a lawsuit, but only intentional torts should concern businesspersons. d) Other than when strict liability applies, both require fault, but intentional torts require proof of willful action. e) Fault is required for both, but a bad motive is required for negligence actions.

d

An insurer has a number of obligations to satisfy its duty of good faith. Which one of the following is not one of those obligations? a)Duty to defend insured issues b)Duty to receive and process claims fairly c)Duty to arrange for a lawyer d)Duty to review relevant evidence e)Duty to defend uninsured issues

e

Beth buys a flashlight from Light Co. Light Co. made the flashlight and shipped it to Packer Inc. to place the batteries and pack it. When Beth opened the package, she noticed there was an odd bulge at the bottom of the flashlight but turned it on anyway. The batteries exploded, injuring Beth. Who is potentially liable for negligence? a)Light Co. only because it made the flashlight and sold it under its name b)Packer Inc. only because it placed the battery and packed the flashlight c)No one. Because Beth negligently failed to inspect the flashlight, she cannot sue anyone for negligence. d)Light Co. and Packer Inc. only because their combined actions created the harm. e)All three parties. Both Light Co. and Packer Inc. may be held liable for any negligence committed, and Beth may be contributorily negligent for turning on the flashlight after she noticed the odd bulge.

e

Insurers may withhold payments or deny coverage when justified. When is an insurer justified in denying coverage? a)Peter and Charles own a painting worth the insured value of $150 000. The painting is destroyed in a fire. Peter makes a claim. b)Jerry drops a Ming vase and claims on his insurance. c)Grandpa Adams died from an unknown heart condition. His widow claims on the life insurance policy. d)An insured claims on an automobile policy where the insured lost control of the vehicle on an icy road and crashed into a fence, harming no one. e)Muriel has kidney disease, but she did not tell her disability insurer when she applied for insurance.

e

Occasionally the courts are presented with a new situation where the duty of care owed is not clear. When this occurs, the courts a) dismiss the case because the courts will not expand the class of people owed a duty of care. b) apply the reasonable person test to determine if the duty of care exists. c) apply the reasonable foreseeability test to determine if the standard of care was too low. d) consider if there is a political reason the duty of care should not be expanded to this new situation. e) determine if a duty would normally be owed and then consider if there is a social policy reason not to enforce that duty in the new situation.

e

Tom bought a bike for $500. He then insured his bike. Two years later, his bike is stolen from his yard. Tom notified his insurance company immediately and filed a police report. The insurance company processed the claim. It will give Tom a)$500. b)a $500 voucher to an approved local bike shop. c)a bike of the same make and model. d)a cheque sufficient to get a new bike. e)a cheque for the market value or replacement value of his bike, depending on the terms of the policy. Submit

e

What is the value of an insured loss? a)The minimum stated in the policy b)A statutory minimum established outside of the insurance policy c)The stated amount of the policy d)The full extent of the loss e)The amount of the loss, within the limits of the policy Submit

e

Which of the following is not an indicator of the existence of a fiduciary duty? a) A person being particularly vulnerable to or being at the mercy of another person holding discretion and power b) The scope for exercise of some discretion or power by one person over another c) A professional relationship involving significant trust between the parties d) The ability of a person to unilaterally exercise power or discretion to affect another person with whom she has a relationship e) A person relying on the advice provided by another person

e