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Business Law > Chapter 5 > Flashcards

Chapter 5 Flashcards

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
Last clear chance doctrine
A largely outdated principle of torts that the last person capable of avoiding the accident is wholly responsible
26
Liability insurance
Insurance covering loss caused by the negligence of oneself or one’s employees
27
Licensee
A person on property with permission but for their own purpose
28
Misfeasance
Wrongful conduct
29
Negligence
An unintentional, careless act or omission that causes injury to another person or their property
30
Negligent statements
Misleading, erroneous statements, made without adequate care, that cause a foreseeable plaintiff harm
31
No fault programs
Insurance programs compensating people for their injuries whether they were at fault or not
32
Nonfeasance
Failure to act; such failure is actionable in a tort only where there is a specific duty to act
33
Non pecuniary damages
Damages based on non-monetary factors such as pain and suffering
34
Prima facie
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
Product liability
The legal liability of the manufacturer or vendor to compensate buyers/users injured because of product defects
36
Professional associations
Organizations empowered to regulate educational qualifications and professional standards for their members; may also have disciplinary powers over members
37
Professional liability
Liability owned by persons failing to live up to the standard expected of a reasonable member of a group with special expertise
38
Professional liability insurance
Speciality insurance for lawyers, doctors, and other professionals designed to cover risks occurring in their practices
39
Proximity
Nearness in place, time, occurrence or relation
40
Reasonable foreseeability test
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
Reasonable person test
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
Remoteness test
Determining wether the damages were too far removed from the original negligent act; a breaching party is only responsible for reasonably expected losses
43
Right of salvage
An insurer’s right after paying the insured to sell damaged or recovered goods to recover losses
44
Res ipsa loquitur
A principle of establishing negligence based on facts that “speak for themselves”; no longer applies in Canadian tort law
45
Strict liability
Liability even in the absence of fault
46
Subrogation
The right of the insurer upon payment to take over the rights of the insured in relation to whoever caused the injury
47
Surety bond
Insurance arranged in case a party to a contract fails to perform
48
Thin skull rule
A principle of torts that we take our victims as we find them, even those with unique physical or mental conditions
49
Trespasser
A person who intentionally and without consent or privilege enters another’s property
50
Umbrella liability
A package of several kinds of insurance
51
Volenti non fit injuria
A defence in torts based on the plaintiff’s voluntarily assuming a clear legal risk

Business Law (16 decks)

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