CH 5 - Negligence, Liability, and insurance

Question 1

What is negligence

Answer 1

Inadvertent or unintentional careless conduct that
causes injury or damage to another person or
their property
* All four required elements must all be established
to succeed in a negligence action:
– A duty of care
– Breach of duty
– Causation
– Damage

Question 2

Ingredient A

Answer 2

A A duty of care is owed to
the plaintiff

We owe a duty to anyone we can reasonably
anticipate might be harmed by our conduct

Question 3

What needs to be established for A

Answer 3

That the proximity of the parties
created an obligation to exercise
caution or care

Question 4

Tests for A

Answer 4

Reasonable Foreseeability Test:
– If it would be apparent to a prudent person that the
conduct was likely to cause injury, a duty is owed

Policy considerations—may
negate existence of a duty

Question 5

Ingredient B:

Answer 5

Breach of the Standard of Care
Once the existence of a duty is established the
second issue is whether the defendant
demonstrated sufficient care

Question 6

What needs to be estblished for B

Answer 6

That the defendant was not careful
enough

Question 7

Tests for B

Answer 7

Reasonable person test
What would a reasonably prudent person, in
possession of all the facts of the case, have done in
this situation?
* Reasonable care, not perfection, is required
– Reasonable conduct varies with circumstances
– Risk of injury affects standard

Question 8

Ingredient C

Answer 8

Causation

Question 9

What needs to be established for C

Answer 9

1. That the defendant directly or
   physically caused the injury;
   and
2. That the injury was reasonably
   foreseeable

Question 10

Tests for C

Answer 10

1. Physical: “but for” test
2. Legal: remoteness test

Question 11

Ingredient D

Answer 11

Damages

Question 12

What needs to be estsablished for D

Answer 12

That the plaintiff suffered injury or
loss

Question 13

Tests for D

Answer 13

Refer to precedents—has this
type of loss been recognized by
courts as compensable?

Question 14

Types of insurance (overview)

Answer 14

Liability Insurance
Property Insurance
Business Interruption Insurance
Life and Health Insurance

Question 15

Liability Insurance

Answer 15

Covers damage caused by negligence of self or
employees
* Does not cover wilful acts

Question 16

Property Insurance

Answer 16

Property
– Covers losses to buildings and their contents due to
fire or other named perils
– Comprehensive covers everything except what is
specifically excluded
* Coverage should correspond to actual value of the
property

Question 17

Business Interruption Insurance

Answer 17

For an unforeseen event that causes a business
to cease operation for a time
* Covers lost profits and expenses of bringing
business back into operation
* Puts insured in same financial position as if the
loss had not occurred

Question 18

Life and Health Insurance

Answer 18

Life
– Provides for dependants and/or Business associates
(“key person”)
– After death of insured
* Health
– Medical: covers health care expenses
– Disability: provides income for disabled worker
– Overlapping extended benefit

Question 19

KNOW THE 5.1 TABLE