Chapter 1 Commercial Liability Flashcards
Rule of Precedent
Current court decisions must follow those cases before of similar circumstance
2 divisions of the legal system
Criminal Law
Civil Law
Courts may award for which 2 main types of damages
Compensatory damages - compensate injured party of bodily injury or property damage
General damages - pain and suffering, humiliation, embarrassment Ect
Special Damages
Out of pocket expenses
Criminal wrong
One who is harmful to the state
Ex; impaired driving , murder
Civil Law
law concerned with the civil rights and remedies
2 types of Civil law
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
2 types of law that fall under both criminal and civil matters
Common law: main body of law
Statute law
Measure of loss for property damage is:
The difference between value of tangible property before and after damage
Actual loss incurred as a result of loss of use of tangible property
Exemplary or Punitive damages
Award is to punish for their behavior and make an example of them
Nominal damages
When there is no substantial loss or injury but the courts award a nominal sum validating a tort had happened
Negligence falls under which type of law
Common Law
Negligence must be proven
Remedies the court may enforce for a breach of contract
Provide payment of damages
Enforce specific performance of a contract
Grant an injunction prohibiting party from performing certain acts
Permit rescission of the contract
What 3 conditions must exist to prove negligence
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
Strict Liability
Based on assumption certain activities are so hazardous presumed to be legally liable
EX
Lighting fires
Operating an aircraft
Keeping dangerous things on premise
Occupier
not dependent ownership of property but has control of the property
Example of premise exposure
Loose railing
wet or slippery floors
carpet lifted
Example of operations exposure
Client welding parts in their garage
Business owner drops can of paint on customers foot
Duty owed to trespassers
To not intentially harm or set traps for them
Principal will share legal liability if
Work was inherently dangerous
Use of faulty machinery or equipment supplied by the principal
Principal controls manner of how work is to be done
When would a landlord be held liable if injuries caused by unsafe condition on property
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
Nuisance
Everything that endangers life and health
Offends the senses
Violates the laws of decency
Obstructs reasonable use of property
Examples of nuisance
Smoke, odours
Noise or vibrations
Pollution of land or waterways
Trespass
Unlawful interference of ones property or rights
What constitutes a defective product
Contains something it should not
Something is omitted from the manufacturer that should have been there
2 duties of manufacturers relating to defective products
Safe design
Safe construction, assembly and packaging
2 duties owned to costumers from manufacturer’s
Give proper warning of dangers
Provide instructions if needed
2 duties of sellers
Be experts in their ingredients and properties they sell
Tell the truth about them
5 claims that can occur due to completed operations exposures
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
Personal liability exposures
Wrongful arrest
Liber or slander
Malicious prosecution
Unlawful interference with ones property
3 types of businesses that have high exposure to personal injury claims
Those who employ store detectives
News and broadcasters
Landlords
2 types of real property
Building
Fixed equipment
Bailee for hire
One who has temporary control and custody of personal property of another for the purpose other then sale who is compensated for such custody
Employers general responsibility towards its employees
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
2 instances where contingent liability exposure exist
Work is done by persons who are not employees
Employees work in another province longer periods then are permitted by the Workers Compensation Plan
3 areas where businesses may incur a Contractual Liability Exposure
Construction contracts
Purchase orders and sale agreements
Other contracts ( lease agreement)
2 liability exposures a business may face arising out of automobiles, aircraft and water craft operations
Owned
Non-owned
Pollution
Contaminating or defiling the environment
3 types of business that may have pollution exposures
Chemical plants
Pulp mills
Gasoline serve
