Chapter 8: Principles of Legal Liability

Question 1

2 types of legal systems

Answer 1

1. criminal law: addresses wrongs against society by punishing the wrongdoer; not insured
2. civil law (private law): addresses disputes between parties by compensating the wronged party

Question 2

What is the goal in a civil action?

Answer 2

to seek compensation for the amount of the financial loss or damage suffered by the insured party

Question 3

2 main areas of comprising civil law

Answer 3

1. contract law: enforces contracts between 2 parties

2. tort law: wrongful act which negligently caused damage to another

Question 4

How laws are interpreted…

Answer 4

1. common law: based on the doctrine of precedence (follows previous rulings)
2. statute law: written law (created by legislation to regulate certain activities)

Question 5

Examples of torts

Answer 5

1. trespass
2. nuisance
3. defamation
4. false arrest
5. invasion of privacy
6. negligence

Question 6

What is a tortfeasor

Answer 6

someone who commits a wrong against an innocent party

joint tortfeasor: 2+ people acting together to cause damage

Question 7

3 elements required to be present in every tort action

Answer 7

1. legal duty owed
2. legal duty breached
3. damages directly resulted

Question 8

Types of torts

Answer 8

1. intentional torts: not insured
2. unintentional torts
3. strict liability

Question 9

Define “negligence”

Answer 9

carelessness = failure to use the care of a reasonable and prudent person given the circumstances

(ie. acting in a way you shouldn’t have or failed to act)

Question 10

Elements present to prove the tort of negligence

Answer 10

1. must prove that duty owed and duty breached by negligence

2. results must have been foreseeable

Question 11

State the “legal duty” owed by occupiers to different types of people entering your premises…

Answer 11

1. trespasser: no legal duty owed but cannot set traps or cause intentional harm
2. visitor: ensure reasonably safe in using the premises
3. children: premises must be safe from all dangers

Question 12

Liability of a landlord in building having multiple tenancy

Answer 12

responsible to both the tenant and others for the condition of the areas common to all tenants, including roof, stairways, parking areas and lobbies

liable when renting furnished premises, agrees to maintain premises but fails, common areas

Question 13

Liability of a tenant to landlord

Answer 13

in tort law: liable for damages caused by negligence

in contract law: for liability assumed by tenant in the lease agreement

Question 14

Liability of a Bailee for customer’s goods

Answer 14

requires ordinary care and is responsible when duty breached by negligence

Question 15

Employer’s liability for torts of employees

Answer 15

employers are liable for employee torts while in course of their duties

not liable when…

1. employees delegate their duties without employer’s consent
2. on a frolic of their own (time off from duties to personal matters)
3. unauthorized use of employer’s property

Question 16

Employer’s liability for injuries to employees

Answer 16

duty established in Workers Compensation Act

no fault basis (no need to prove negligence and can’t sue if accepted)

Question 17

Liability of property owners for torts of an independent contractor

Answer 17

not liable for contractor negligence except when…

1. work is inherently dangerous
2. occupier supplies defective material or equipement
3. occupier controls the work

Question 18

Liability of owners for injury or damaged caused by domestic animals and wild animals

Answer 18

domestic animals: owner is liable on the 1st bite

wild animals: strictly liable

Question 19

Liability of children

Answer 19

children are responsible unless you can prove lack of understanding of consequences

Question 20

Parents are generally not liable of their children unless…

Answer 20

1. fails to supervise the child
2. damage caused by dangerous thing given to child by parents
3. child acting on authority of parents
4. child working at parents business (if damage results from duties given to child)

Question 21

Joint Liability

Answer 21

when liability isn’t equal, the law holds each party fully responsible

Question 22

Occupier required to make premises safe for use of these persons

Answer 22

Visitor

Question 23

Occupier must ensure that the premises are safe from any danger whatsoever

Answer 23

Children

Question 24

These persons are owed no legal duty but the occupier cannot intentionally harm them or set traps

Answer 24

Trespasser