Chapter 1 Questions

Question 1

Explain how laws are established for criminal and civil law

Answer 1

Common law - min body of law, subject to change - rule of precedent
Statute law

Question 2

Describe two types of compensatory damages and provide an example of each.

Answer 2

General damages - losses where amounts are not easily quantifiable - pain and suffering, loss of enjoyment of life, loss of future earnings

Special damages - losses where amounts are easily quantifiable - medical bills, ambulance bills, loss of current earnings

Question 3

Provide two examples of when exemplary damages maybe awarded.

Answer 3

Awarded to punish defendants. They are imposed when the court wants to make an example of them. Violence, oppression, malice, fraud or callus conduct. Designed to punish.

Question 4

What are four potential remedies to a breach of contract?

Answer 4

Provide payment of damages to injured party

Enforce performance of contract

Grant injunction prohibiting performance or ensuring a party performs certain acts

Is to permit the contract to be set aside

Question 5

Premises & Operations

Answer 5

The actual building or the premises that causes damage to other people
Business operations on the premises, take our business on the road - liability exposure

Question 6

Products

Answer 6

Injury or property damage from our products

Question 7

Completed operations

Answer 7

Work completed and taken away from the business or abandon it - what if someone is injured because of our work or our work causes property damage

Question 8

Personal injury liability

Answer 8

The injury to a person’s character, no physical harm. This is more emotional harm. Invasion of privacy. Falsely accused someone of shoplifting. Personal libel and slander.

Question 9

Property of others

Answer 9

Property in the custody of the insured. Do you rent things from 3rd parties that you are responsible for.

Question 10

Employer’s liability

Answer 10

What happens if one of our employees are injured. What happens when one of our employees injured a 3rd party?

Question 11

Contingent liability

Answer 11

Backup plan. When you contact out to other businesses, whether that is you have a contact with 3rd party to do a delivery or transport your customers, it is in relation to your business and if something happens you could be called to defense. That is contingent exposure.

Question 12

Contractual liability

Answer 12

Things that you take on voluntarily under contract. Exposure because they are voluntarily assuming responsibility.

Question 13

Automobile and Aircraft

Answer 13

Anytime you own an auto, you have auto exposure. Also Anytime that it is used in conjunction with the business, regardless of who owns it, there is an exposure.
Same as with aircraft.

Question 14

Pollution

Answer 14

Pollutants that can violate the environment. Any kind of contaminants or something that can defile the environment.

Question 15

Malpractice

Answer 15

Professional liability. You could have a secondary exposure to malpractice- first aid kit could potentially have an exposure.

Question 16

Outline four examples of activities that would impose strict liability

Answer 16

Setting explosives
Intentional setting of fires
Operating an aircraft
Keeping of a dangerous thing

Question 17

According to the occupiers liability acts, who are two persons not owed the standard duty of care to persons coming onto the premises?

Answer 17

Visitors who willingly accept the risk - voluntary assumed the risk

Trespassers - not permitted to be there

Question 18

What must a principle show to relieve themselves of liability with respect to work done by an independent contractor?

Answer 18

Reasonable care was exercised in the selection of contractor
It was reasonable the work was being done

Question 19

Donahue v. Stevenson was a precedent setting case. What impact did the decision in this case have on the ability of consumers to sue manufacturers?

Answer 19

Manufacturers are now responsible to the end user of the product.
It is not restricted to just those who purchased the product.

Question 20

What is the standard of care owed by a bailee to their customers?

Answer 20

Ordinary care - their negligence must have caused the damage
Defined as the same level of care a prudent owner would take for the protection of their property

Tort based duty of care

Contact law - may assume additional responsibility under contract