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Business Law > Chapter 5 > Flashcards

Chapter 5 Flashcards

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1
Q

Adjusters

A

Representatives of the insurer who are charged with investigating and settling claims after the insured against event occurs

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2
Q

Breach of trust

A

Misuse of property held in trust for another by a trustee

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3
Q

Brokers

A

Persons engaged, for a fee, to negotiate a contract for another; a party hired to ascertain an insured’s insurance needs and secure the necessary coverage

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4
Q

Builder’s risk policy

A

Insurance against liability and other forms of loss taking place during the construction process

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5
Q

Business interruption insurance

A

A form of insurance that compensates the insured for continuing expenses incurred while the business is not earning income

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6
Q

But for test

A

A test for causation used in negligence actions to determine wether the injury would have occurred had it not been for the act of the defendant

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7
Q

Causation

A

The fact of being the cause of something happening

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8
Q

Circumstantial evidence

A

Testimony not based on actual observation or personal knowledge; evidence that leads one to infer the existence of other facts

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9
Q

Co-insurance clauses

A

Requirements that the insured bear some risk

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10
Q

Comprehensive policy

A

Property insurance covering all losses not specifically exculdex

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11
Q

Contra proferentum rule

A

A rule of interpretation; ambiguous provisions in a written contract are to be construed against the party that drafted the agreement

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12
Q

Contributory negligence

A

A failure to take reasonable care, which contributes to the injury complained of

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13
Q

Crumbling skull rule

A

A tort law principle that the defendant is not liable for losses that were inevitable; used in conjunction with the thin skull rule

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14
Q

Duty

A

In a negligence action, an obligation to live up to a reasonable standard

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15
Q

Duty of care

A

An obligation to take steps to avoid foreseeable harm; an essential element for establishing liability in the tort of negligence

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16
Q

Errors and omissions insurance

A

Insurance to protect the holder should they cause injury by negligence

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17
Q

Fidelity bond

A

An employer’s insurance against an employees wrongful conduct

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18
Q

Fiduciary duty

A

A duty to act in the best interests of another, also called utmost good faith

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19
Q

Forfeiture rule

A

The principle that a criminal should not be permitted to profit from a crime

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20
Q

Fraud

A

The tort of intentionally or recklessly misleading another person making statements without belief in their truth

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21
Q

Good faith

A

Acting with honesty and integrity

22
Q

Insurance interest

A

A real and substantial interest in specific property or in someone’s life

23
Q

Insurance agents

A

Persons acting on behalf of an insurer to handle policies

24
Q

Invitee

A

A person coming onto a property for a business purpose

25
Q

Last clear chance doctrine

A

A largely outdated principle of torts that the last person capable of avoiding the accident is wholly responsible

26
Q

Liability insurance

A

Insurance covering loss caused by the negligence of oneself or one’s employees

27
Q

Licensee

A

A person on property with permission but for their own purpose

28
Q

Misfeasance

A

Wrongful conduct

29
Q

Negligence

A

An unintentional, careless act or omission that causes injury to another person or their property

30
Q

Negligent statements

A

Misleading, erroneous statements, made without adequate care, that cause a foreseeable plaintiff harm

31
Q

No fault programs

A

Insurance programs compensating people for their injuries whether they were at fault or not

32
Q

Nonfeasance

A

Failure to act; such failure is actionable in a tort only where there is a specific duty to act

33
Q

Non pecuniary damages

A

Damages based on non-monetary factors such as pain and suffering

34
Q

Prima facie

A

A judicial finding that circumstantial evidence establishes a case “on the face of it” which prevails until contradicted and overcome by evidence to the contrary

35
Q

Product liability

A

The legal liability of the manufacturer or vendor to compensate buyers/users injured because of product defects

36
Q

Professional associations

A

Organizations empowered to regulate educational qualifications and professional standards for their members; may also have disciplinary powers over members

37
Q

Professional liability

A

Liability owned by persons failing to live up to the standard expected of a reasonable member of a group with special expertise

38
Q

Professional liability insurance

A

Speciality insurance for lawyers, doctors, and other professionals designed to cover risks occurring in their practices

39
Q

Proximity

A

Nearness in place, time, occurrence or relation

40
Q

Reasonable foreseeability test

A

A test it whether a duty of care is owed, based on what a person should have anticipated would be the consequences of their action

41
Q

Reasonable person test

A

In a negligence action, the judicial standard of socially acceptable behaviour; the standard used to determine the existence of apparent authority of an agent

42
Q

Remoteness test

A

Determining wether the damages were too far removed from the original negligent act; a breaching party is only responsible for reasonably expected losses

43
Q

Right of salvage

A

An insurer’s right after paying the insured to sell damaged or recovered goods to recover losses

44
Q

Res ipsa loquitur

A

A principle of establishing negligence based on facts that “speak for themselves”; no longer applies in Canadian tort law

45
Q

Strict liability

A

Liability even in the absence of fault

46
Q

Subrogation

A

The right of the insurer upon payment to take over the rights of the insured in relation to whoever caused the injury

47
Q

Surety bond

A

Insurance arranged in case a party to a contract fails to perform

48
Q

Thin skull rule

A

A principle of torts that we take our victims as we find them, even those with unique physical or mental conditions

49
Q

Trespasser

A

A person who intentionally and without consent or privilege enters another’s property

50
Q

Umbrella liability

A

A package of several kinds of insurance

51
Q

Volenti non fit injuria

A

A defence in torts based on the plaintiff’s voluntarily assuming a clear legal risk

Business Law (16 decks)

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