Chapter 1 Commercial Liability

Question 1

Rule of Precedent

Answer 1

Current court decisions must follow those cases before of similar circumstance

Question 1

2 divisions of the legal system

Answer 1

Criminal Law
Civil Law

Question 2

Courts may award for which 2 main types of damages

Answer 2

Compensatory damages - compensate injured party of bodily injury or property damage
General damages - pain and suffering, humiliation, embarrassment Ect

Question 3

Special Damages

Answer 3

Out of pocket expenses

Question 4

Criminal wrong

Answer 4

One who is harmful to the state
Ex; impaired driving , murder

Question 5

Civil Law

Answer 5

law concerned with the civil rights and remedies

Question 6

2 types of Civil law

Answer 6

Tort law: enables victims to obtain compensation from those who caused it
Contract law: failure without legal excuse to preform whole or part of a contract

Question 7

2 types of law that fall under both criminal and civil matters

Answer 7

Common law: main body of law
Statute law

Question 8

Measure of loss for property damage is:

Answer 8

The difference between value of tangible property before and after damage
Actual loss incurred as a result of loss of use of tangible property

Question 9

Exemplary or Punitive damages

Answer 9

Award is to punish for their behavior and make an example of them

Question 10

Nominal damages

Answer 10

When there is no substantial loss or injury but the courts award a nominal sum validating a tort had happened

Question 11

Negligence falls under which type of law

Answer 11

Common Law
Negligence must be proven

Question 12

Remedies the court may enforce for a breach of contract

Answer 12

Provide payment of damages
Enforce specific performance of a contract
Grant an injunction prohibiting party from performing certain acts
Permit rescission of the contract

Question 13

What 3 conditions must exist to prove negligence

Answer 13

Defendant owed a duty of care
Duty of care was breached as result of defendants negligence
Plaintiff suffered damages as a result of defendants negligence

Question 14

Strict Liability

Answer 14

Based on assumption certain activities are so hazardous presumed to be legally liable
EX
Lighting fires
Operating an aircraft
Keeping dangerous things on premise

Question 15

Occupier

Answer 15

not dependent ownership of property but has control of the property

Question 16

Example of premise exposure

Answer 16

Loose railing
wet or slippery floors
carpet lifted

Question 17

Example of operations exposure

Answer 17

Client welding parts in their garage
Business owner drops can of paint on customers foot

Question 18

Duty owed to trespassers

Answer 18

To not intentially harm or set traps for them

Question 19

Principal will share legal liability if

Answer 19

Work was inherently dangerous
Use of faulty machinery or equipment supplied by the principal
Principal controls manner of how work is to be done

Question 20

When would a landlord be held liable if injuries caused by unsafe condition on property

Answer 20

Tenants made aware of dangerous conditions on property at time lease was made
Landlord to repair premises where dangerous conditions exist
Multiple units landlord liable for both tenants and those who enter the premise

Question 21

Nuisance

Answer 21

Everything that endangers life and health
Offends the senses
Violates the laws of decency
Obstructs reasonable use of property

Question 22

Examples of nuisance

Answer 22

Smoke, odours
Noise or vibrations
Pollution of land or waterways

Question 23

Trespass

Answer 23

Unlawful interference of ones property or rights

Question 24

What constitutes a defective product

Answer 24

Contains something it should not
Something is omitted from the manufacturer that should have been there

Question 25

2 duties of manufacturers relating to defective products

Answer 25

Safe design
Safe construction, assembly and packaging

Question 26

2 duties owned to costumers from manufacturer’s

Answer 26

Give proper warning of dangers
Provide instructions if needed

Question 27

2 duties of sellers

Answer 27

Be experts in their ingredients and properties they sell
Tell the truth about them

Question 28

5 claims that can occur due to completed operations exposures

Answer 28

Improper performance
Use of defective materials, parts or equipment
Work not warranted
Damage to completed work
Failure of the contractor to withdraw, inspect or repair defective work

Question 29

Personal liability exposures

Answer 29

Wrongful arrest
Liber or slander
Malicious prosecution
Unlawful interference with ones property

Question 30

3 types of businesses that have high exposure to personal injury claims

Answer 30

Those who employ store detectives
News and broadcasters
Landlords

Question 31

2 types of real property

Answer 31

Building
Fixed equipment

Question 32

Bailee for hire

Answer 32

One who has temporary control and custody of personal property of another for the purpose other then sale who is compensated for such custody

Question 33

Employers general responsibility towards its employees

Answer 33

Employee acted outsider of scope of duties
Delegates any part of their authority or arrange someone who is not an employee do their work, without consent of employer
Are on a frolic of their own
Use employers property without authorization

Question 34

2 instances where contingent liability exposure exist

Answer 34

Work is done by persons who are not employees
Employees work in another province longer periods then are permitted by the Workers Compensation Plan

Question 35

3 areas where businesses may incur a Contractual Liability Exposure

Answer 35

Construction contracts
Purchase orders and sale agreements
Other contracts ( lease agreement)

Question 36

2 liability exposures a business may face arising out of automobiles, aircraft and water craft operations

Answer 36

Owned
Non-owned

Question 37

Pollution

Answer 37

Contaminating or defiling the environment

Question 38

3 types of business that may have pollution exposures

Answer 38

Chemical plants
Pulp mills
Gasoline serve