Chapter 1

Question 1

Invading rights of others is a legal wrong.

Answer 1

True

Question 2

Criminal wrongs are harmful to the state.

Answer 2

True

Question 3

Criminal wrongs are outlined in the Canadian Criminal Code.

Answer 3

True

Question 4

There is no duty on the state to pursue people who commit criminal wrongs.

Answer 4

False

Question 5

Criminal law focuses on punitive sanctions.

Answer 5

True

Question 6

Civil law deals with private rights and remedies.

Answer 6

True

Question 7

When private rights are breached, it is up to plaintiffs to launch court actions.

Answer 7

True

Question 8

Civil law deals with tort law and contract law.

Answer 8

True

Question 9

State the primary purpose of tort law.

Answer 9

To provide compensation to plaintiffs

Question 10

Define ‘tort’

Answer 10

A private wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages.

Question 11

Identify two types of torts and provide one example of each

Answer 11

Intentional Torts: Example: Deliberating hitting someone (criminal act)

Unintentional Torts: Example: Customer in client’s store trips on loose carpet and is injured.

Question 12

Provide an example of breach of contract

Answer 12

You hire a contractor to build a house. This contractor never shows up to perform the job.

Question 13

Common law is the main body of law in Canada. Common law is based on the Rule of Precedent. Describe how this influence decisions made by courts.

Answer 13

Courts of today will be guided by decisions of previous courts in matters having similar circumstances.

Question 14

Are Rules of Precedent subject to change?

Answer 14

Yes, sometimes what made sense in the past no longer makes sense today.

Question 15

Define ‘Statute Law’.

Answer 15

Statute laws are written laws enacted by provincial and federal governments. When these laws are in place, they will override common law.

Question 16

What are compensatory damages?

Answer 16

Compensatory damages are awarded by courts to compensate plaintiffs.

Question 17

Describe the 3 types of Compensatory Damages

Answer 17

i) Bodily Injury:
a) General Damages - An amount the court deems fair (pain & suffering, future earnings, humiliation)
b) Special Damages - out of pocket expenses (travel expenses, doctor charges)

ii) Property Damage: difference in value and / or loss of use

iii) Factors affecting compensation amounts for general & special damages:
a) reputation / Social position, Dependents, Financial circumstance, Plaintiff’s lawyer

Question 18

What is the purpose of exemplary or punitive damages?

Answer 18

Exemplary or punitive damages are awarded by courts to punish defendants. Courts impose these awards on defendants when they wish to make an example of them.

Question 19

When may courts award nominal damages?

Answer 19

When cases are brought on questions of principals and plaintiffs have not suffered any damages.

Question 20

Courts provide many remedies for breach of contract. Identify these remedies.

Answer 20

i) Provide for payment of damages to plaintiff
ii) Enforce specific performance of contract
iii) Grant an injunction not allowing a party to perform a specific act
iv) Grant rescission of contract to return parties to their pre-contract position

Question 21

Describe the doctrine of negligence.

Answer 21

Doctrine of negligence places a duty on all people to use due care in their interactions with others from which injury may result.

Question 22

What are three conditions required before negligence can be proven?

Answer 22

i) Defendant owed the plaintiff a legal duty of care
ii) Duty was breached as a result of defendant’s negligence
iii) Plaintiff suffered damages as a proximate result of the defendant’s negligence

Question 23

Courts do not expect perfection of defendants. What will courts use as a measurement of a defendant’s actions?

Answer 23

Courts will compare defendant’s actions with that of a reasonable man.

Question 24

Defendants can be held strictly liable. Usually people are innocent until proven guilty. This changes with strict liability. Explain strict liability.

Answer 24

When certain actions are hazardous, courts may assume defendants are guilty until they can prove themselves innocent.

Question 25

Why might strict liability be imposed by courts?

Answer 25

Courts impose strict liability on those who are in the best position to control losses arising from hazardous activities.

Question 26

List three examples of operations that may impose strict liability.

Answer 26

i) Using explosives ii) Operating aircraft iii) Lightning fires

Question 27

When clients have questions regarding the law, what should brokers advise?

Answer 27

Refer client to proper legal professional.

Question 28

When will people be considered occupiers?

Answer 28

People are considered occupiers when they control premises. Occupiers admit and exclude entry of others to the premises.

Question 29

Occupiers’ Liability Acts increase duty of care on occupiers. What is this duty of care?

Answer 29

Occupiers’ Liability Acts impose common duty on all occupiers to keep visitors reasonably safe when using premises for which they were invited, permitted by law to use premises, or permitted by occupier to use premises.

Question 30

According to Occupiers’ Liability Act, who are two persons not owed this duty of care?

Answer 30

i) Visitors who willingly accept risks ii) Trespassers

Question 31

What are two activities which could result in trespassers successfully suing occupiers?

Answer 31

i) Setting traps for trespassers ii) Intentionally harming trespassers

Question 32

In common law, independent contractors are responsible for their own torts. For occupiers to avoid torts of independent contractors, what must occupiers prove?

Answer 32

i) They must show that reasonable care was used when selecting independent contractors ii) Work that was requested to completed, was reasonable work

Question 33

What are three circumstances where occupiers may be held responsible for negligence of independent contractors?

Answer 33

i) When working being performed by independent contractors was inherently dangerous ii) When loss is caused by defective equipment, machinery or supplies provided by occupier iii) When occupier (principal) controls independent contractor’s performance of work

Question 34

When may landlords be held responsible for injuries in single occupancy buildings?

Answer 34

Landlords of single occupancy buildings may be liable for injuries when they were aware of dangerous conditions which existed when lease was signed. Landlords may also be liable when they agree to maintain premises and fail to do so after receiving reasonable notice from tenant and injuries result.

Question 35

Landlords of multiple occupancy buildings have responsibilities for certain areas of buildings. What are these areas and what are landlord’s responsibilities?

Answer 35

Landlords are responsible for injuries occurring in common areas.

Question 36

What are three activities that would constitute a nuisance?

Answer 36

i) Allowing smoke, vapors, fumes, and odors to escape premises ii) Causing noise or vibrations which annoys neighbors iii) Polluting land or water of others

Question 37

What are two activities which could constitute the tort of trespass?

Answer 37

i) Building structures which encroach on another’s land ii) Disposing of garbage and other waste products on another’s land

Question 38

What two conditions must be present for a products liability claim to proceed?

Answer 38

i) Loss must occur away from premises of person selling product ii) Seller has completely given up possession of product causing loss

Question 39

What two options are available to injured parties when they wish to sue manufacturers?

Answer 39

i) Injured parties may sue manufacturer in contract ii) Injured parties may sue manufacturer in tort

Question 40

What piece of legislation outlines the responsibilities of sellers to buyers?

Answer 40

Sales of Goods Act

Question 41

Sellers must ensure the fitness of their product for a particular purpose. This is an example of an implied warranty. This implied warranty requires buyers to exercise care in the selection of products to be used for a particular purpose. There is one important exception to this implied warranty found in the ‘Sales of Goods Act’ which may place responsibility back on the seller. Explain this exception.

Answer 41

When buyer makes known the particular purpose for which an item in required and depends on seller’s knowledge, it is implied that this product is reasonably fit for this purpose.

Question 42

When buyers and sellers make their own conditions of sales, what are these conditions known as in the ‘Sale of Goods Act’?

Answer 42

These are known as express warranties.

Question 43

What impact did the Donaghue v. Stevenson decision have on the abilities of consumers to sue manufacturers?

Answer 43

Manufactures, as a result of this case, were made responsible to the ultimate end users of their products.

Question 44

What are three duties owed by manufacturers to users of their products?

Answer 44

i) Manufacturers are responsible for safe design ii) Manufacturers must give proper warnings of dangers when using products iii) Manufacturers must provide instructions, when required

Question 45

What are two duties of sellers?

Answer 45

i) Sellers are expected to be experts in the products they sell ii) Sellers are expected to tell the truth about their products

Question 46

What two conditions must be present for a completed operations loss to succeed?

Answer 46

i) Loss must occur away from premises of person doing work ii) Work must have been completed or abandoned by person doing work

Question 47

What are two ways tenants may be found liable for damage to premises they occupy?

Answer 47

i) Tenants may be responsible for losses in contract ii) Tenants may be responsible for losses in tort

Question 48

What standard of care do bailees owe to their customers?

Answer 48

Bailees must use ordinary care when possessing other’s property.

Question 49

What is the common law rule respecting employer’s liability for torts of their staff?

Answer 49

Employers are responsible for torts of employees committed while doing their normal actions in their job.

Question 50

When will employers not be held responsible for the torts of staff?

Answer 50

i) When employees delegate their work to someone else without employer’s permission ii) When employees frolic iii) When employees use employers’ property without permission

Question 51

Generally, are employers responsible for injuries sustained by employees arising out of the course of their employment? Explain your answer.

Answer 51

No, employers will not be responsible for injuries to employees because most employees are enrolled in provincial workers compensation plans. When eligible for benefits under these plans, employees give up their right to sue employers.

Question 52

3 Degrees of Negligence

Answer 52

Negligence, Gross Negligence & Criminal Negligence

Question 53

3 types of Tort Damages

Answer 53

a) Compensatory Damages (bodily injury, property damage & factors affecting compensation amounts for general & special damages) b) Exemplary or punitive damages - meant to punish or make example of (i.e. violence or fraud) c) Nominal Damages - used to establish validity of claim when there is no substantial loss (pay $1)

Question 54

What are the 11 possible commercial liabilities

Answer 54

1. Premises & Operations 2. Completed Operations Exposure 3. Product Liability 4. Property in custody exposure 5. Employers Liability exposure 6. Contingent Liability Exposure 7. Contractual Liability Exposure 8. Automobile / aircraft / watercraft exposure 9. Pollution Liability Exposure 10. Incidental Medical Malpractice 11. Personal Injury Exposure

Question 55

What are the 2 kinds of laws

Answer 55

Civil & Criminal Law

Question 56

Laws are established in

Answer 56

Statute Law & Common Law

Question 57

How are tort damages awarded

Answer 57

Write & execution against property & Garnishing of wages

Question 58

Liability established in:

Answer 58

Statute Law - if statute is breached, the owner is liable Common Law - Doctrine of Negligence (duty to all persons to exercise due care in their conduct towards others

Question 59

What must the plaintiff prove in Common Law

Answer 59

1. Defendant owed legal duty of care 2. Duty breached as result of negligence 3. Suffered damages as proximate result

Question 60

11 Possible Commercial Liabilities

Answer 60

Premises and Operations Completed Operations Product Liability Property in custody Exposure Employeer's liability Exposure Contingent Liability Exposure Contractual Liability Exposure Automobile / Aircraft / water craft Exposure Pollution Liability exposure Incidental MedMal exposure Personal Injury Exposure