4- Legal and Professional Liability Flashcards
The principle of ___ maintains that anyone who causes injury to another person is liable for compensation
civil liability
The Civil Code of Québec provides the creditor with three recourses in the event that the debtor defaults on a contract.
The creditor can obtain:
- resiliation of the contract
- an injunction forcing the debtor to honour his or her obligation
- damages
For the employer to be liable, two essential conditions must be present:
- the person must be his or her employee and under his or her authority;
- the employee must have committed the act when exercising his or her duties.
Act respecting ____ in the private sector prohibits the collection, utilization or transmission to third parties of personal information concerning a client without providing him or her with appropriate explanations and obtaining his or her consent.
the protection of personal information
Act respecting ___ stipulates that the client’s consent must be
obtained if the financial planner or group savings plan representative is to have access to his or her personal
information when it will be used for a purpose other than that for which it was collected
the distribution of financial products and services
Unjust enrichment is a principle that allows
a person who was impoverished due to another person’s enrichment to be indemnified.
For unjust enrichment to apply, the five following conditions must be present:
- one party’s enrichment or gain
- the other party’s impoverishment or loss
- a correlation between the gain and the loss
- the absence of legally recognized justification for the gain or loss
- the absence of any other recourse for the person who was impoverished
For a person to be held liable for damages, the following three elements must be present:
- fault;
- damage;
- a causal link between the fault and the damage sustained
There are three kinds of damage:
- Bodily injury
- Material injury, namely injury to assets;
- Moral injury, which covers all other kinds of damage, namely psychological damage.
A clause that limits or completely exempts one of the parties from liability is known as an
exoneration clause
activities of financial planners regulated by the Act ___
respecting the distribution of financial products and services
The DFPS Act imposes a number of duties on financial planners namely: (3)
- act with honesty and loyalty
- act with competence and professional integrity;
- they may not exert undue pressure on a client or use fraudulent tactics to purchase a financial product.
The DFPS Act has provided for agencies in order to: (4)
- ensure uniform training criteria
- control the use of professional titles
- enforce a code of ethics
- control the compulsory disclosure of certain information to clients
The agencies monitoring are (5):
- Institut québécois de planification financière (IQPF)
- Autorité des marchés financiers (AMF)
- Chambre de la sécurité financière (CSF)
- Fonds d’indemnisation des services financiers (FISF)
- Professional orders
the CSF has jurisdiction over ___ not ___
natural persons
firms.
