Chapter 5 Negligence Flashcards
In order for a trading services representative to be liable for a negligent misrepresentation certain facts must be proven. Which of the following is NOT a requirement for establishing a claim based upon negligent misrepresentation?
(1) A contractual relationship must exist between the representative and the person to whom the representation is made.
(2) The statement may be either one of fact or an opinion given by the representative.
(3) The statement must be reasonably relied upon by the person to whom it was made, and damage must result from that reliance.
(4) The representative must make no clear disclaimer of liability for the accuracy of the statement.
1
In order for a licensee to be liable for damages caused by a negligent misstatement, certain facts must be proved. These include that the licensee making the statement:
A. did so in the course of business.
B. did not qualify or disclaim the statement.
C. knows, or should have known, that the advice was relied upon.
D. knows that the statement was false, or speaks recklessly, without caring whether it is true or false.
E. must have special expertise in the area on which the advice was given.
F. must have a contractual relationship with the person to whom he or she is giving the advice.
(1) B, C, D and E above are required.
(2) A, B, C and E are required.
(3) All of the above are required.
(4) A, B, C, D and F are required.
2
Larry is a real estate licensee. During negotiations for the sale of a property with a well water system, the buyer asked how reliable a water source the well was. Larry, relying only on information from the seller, told the buyer that the well was reliable and supplied sufficient water for normal domestic uses. After completion of the sale, the buyer discovered that the water available was completely inadequate for domestic purposes because of a serious water shortage problem known to occur every year in the area. Which of the following statements is TRUE?
(1) Larry is not liable to the buyer in negligence because he exercised reasonable care and skill under the circumstances.
(2) The seller does not owe a duty of disclosure of this defect (annual water shortage) to the buyer.
(3) The seller is not liable to anyone for his misrepresentation because he is not a real estate professional.
(4) None of the above are true.
4
Which of the following could a defendant use as a defence to a claim in negligence against him?
(1) The defendant did not intend to cause injury or damage to the plaintiff.
(2) The defendant breached the standard of care owed to the plaintiff.
(3) The damage suffered by the plaintiff was not reasonably foreseeable by a person in the defendant’s position.
(4) The act of the defendant was authorized by statute.
3
Which of the following is NOT an element of the tort of negligent misrepresentation?
(1) a statement of fact or opinion given negligently
(2) reasonable reliance on the statement by the person to whom it is given
(3) a contractual relationship between the parties
(4) no clear qualification by the speaker that he or she disclaims any liability for the accuracy of the statement
3
which of the following is NOT a requirement for a successful claim of negligent misrepresentation?
- a statement of fact given negligently
- reasonable reliance on the statement by the person to whom it is given
- an existing contractual relationship between the parties
- a special relationship between plaintiff and defendant giving rise to the duty of care
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