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CPT > Section 5 > Flashcards

Section 5 Flashcards

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1
Q

What risk management approach involves modifying the risk by removing part of the activity?

A

reduction

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2
Q

Which of the following is one of the four elements that must be established to substantiate a change of negligence in court?

a) arraignment
b) contract
c) proximate causation
d) fraudulent transfer

A

c) proximate causation

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3
Q

A client fails to disclose to his PT that he takes a beta-blocker. During cardio exercise on a treadmill, the client experiences a cardiac event & is rushed to the hospital. The client attempts to sue the PT. Which of the following concepts will most likely protect the PT in this situation?

a) inherent risks
b) contributory negligence
c) informed consent
d) gross negligence

A

b) contributory negligence

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4
Q

Which of the following scenarios would pose the highest chance for a legal action?

a) a PT canceling a session at the last minute
b) a PT conducting the same fitness assessments for all clients
c) a PT asking a client to sign a photography release waiver
d) a PT asking another trainer to conduct a client session on his or her behalf

A

b) a PT conducting the same fitness assessments for all clients

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5
Q

what is the def of standard of care?

A

appropriateness of an exercise professional’s actions in light of current professional standards & based on age, condition & knowledge of client.

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6
Q

What is the definition of a corporation?

A

a legal entity, independent of its owners & regulated by state lows; any # of people may own a corp. through shares issued by business

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7
Q

what is the def. of a general partnership?

A

a type of business arrangement in which each partner assumes management responsibility & unlimited liability & must have at least a 1% interest in profit & loss

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8
Q

What is general supervision?

A

a method of supervision where the worker(or trainee) does not require constant attendance of supervisor(or trainer)

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9
Q

What is gross negligence?

A

a form of negligence that is worse than normal negligence. generally, a waiver clause cannot prevent a suit for gross negligence as for wanton or recklessness or intentional misconduct in any state or jurisdiction.

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10
Q

What is an LLC?

A

limited liability comp.; a company that limits investors personal financial & legal liabilities but provides flow-through taxation for investors. it is not limited to a certain n# of shareholders & ownders do not have to be US citizens

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11
Q

What is an LLP?

A

limited liability partnership; a partnership in which some or all partners(depending on jurisdiction) have limited liability; exhibits elements of both partnership & corp.

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12
Q

What is a limited partner?

A

an individual who retains no legal liability beyond their initial investment & does not have any formal input regarding partnership operations

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13
Q

What is professional liability insurance?

A

insurance to protect PT against professional negligence or failure to perform as a competent & prudent professional would under similar circumstances

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14
Q

What is negligence?

A

failure of a person to perform as a reasonable & prudent professional would perform under similar circumstances

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15
Q

What is a subchapter s-corp?

A

a corp that does not pay any income taxes. instead, the corp’s income or loss are divided among & passes through its shareholders

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16
Q

What is specific supervision?

A

a method of supervision where the worker(or trainee) requires direct involvement of the supervisor(or trainer)

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17
Q

What is vicarious liability or respondeat superior?

A

a legal doctrine wherein the actions of an employee can subject he employer to liability

18
Q

What is an agreement to participate?

A

signed document that indicates the client is aware of inherent risks & potential injuries that can occur from participation

19
Q

What is an exculpatory clause?

A

a clause w/in a waiver that bars the potential plaintiff from recovery

20
Q

What is informed consent?

A

a written statement signed by a client prior to testing that informs them of testing purposes, processes & all potential risks & discomforts

21
Q

What is inherent risk?

A

risks that can occur through normal participation in the stated activity. inherent risks can only be avoided by declining to participate

22
Q

What keyman insurance?

A

insurance that compensates a company for the loss of a representative of the company who was performing unique & valuable functions

23
Q

What is an umbrella liability policy?

A

insurance that provides add’l coverage beyond other insurance such as professional, home, automobile, etc.

24
Q

What is a waiver?

A

voluntary abandonment of a right to file suit; not always legally binding.

25
Q

What is contributory negligence?

A

a legal defense used in claims or suits when the plaintiff’s negligence contributed to the act in dispute

26
Q

What is comparative negligence?

A

a system used in legal defenses to distribute fault between an injury party & defendant

27
Q

What are the advantages & disadvantages of a partnership?

A 
Advantages:
- easily created
- flow thru taxation
Disadvantages:
- potential mgmt disputes
- personal liability, except limited partners
28
Q

What are the advantages & disadvantages of a s-corp?

A 
Advantages:
- flow thru taxation
- limited liability
Disadvantage:
- limited # of potential investors
- costs of formation & ops
29
Q

What are the advantages & disadvantages of a LLC/LLP?

A 
Advantages:
- flow thru taxation
- limited liability
Disadvantages:
- operating stds not defined in all states
30
Q

What are the advantages & disadvantages of a c-corp?

A 
Advantages:
- limited liability
- unlimited # of investors
Disadvantages:
- cost of formation & ops
- double taxation
31
Q

What is the legal term used to describe a situation where a personal trainer fails to act & a client is injured, but the client is determined to have played a role in his/her own injury & the court apportions a % of guilt to all parties involved?

A

comparative negligence

32
Q

PTs who provide training sessions to individuals and/or groups in clients’ homes or outdoor settings should check w/ current ins. provider to see if they are covered for training in these settings or if they need to add what to their existing professional liability insurance?

A

Specific insurance rider

33
Q

What are the advantages of owning a franchise?

A
  • obtaining rts to recognized brand name that will assist PT in creating a strong presence in specific market
  • access to bus. & ops. systems created by franchiser
  • access to national adv. programs & ability to share costs ass. w/ marketing & brand identity w/ other franchise owners
  • ability to control the business, as long as needs & requirements of parent franchise company are met
  • franchisers will provide training & advice on all aspects of marketing & operating the business
34
Q

What are the disadvantages of owning a franchise?

A
  • upfront costs
  • ongoing costs to maintain association
  • annual costs of maintaining franchise
  • an association w/ a particular brand, if other franchisees engage in unethical practices or perform badly
  • the franchisee agrees to follow franchise’s operating model, which could limit franchisee’s ability to adapt to changing market forces
35
Q

What are the 5 steps of risk-management protocol?

A
  1. risk identification
  2. risk evaluation
  3. selection of approach for managing each risk
  4. implementation
  5. evaluation
36
Q

What is meant by risk identification?

A

involves spec. of all risks that may be encountered in areas of instruction, supervision, facilities, equipment, contracts & bus. structure

37
Q

What is meant by risk evaluation?

A

PT must review each risk, w/ consideration given to probability that risk could occur & conceivable severity

38
Q

What are 4 approaches for managing risk?

A

a. avoidance
b. transfer
c. reduction
d. retention

39
Q

What is meantt by risk avoidance?

A

remove the possibility of danger & injury by eliminating activity

40
Q

What is meant by risk transfer?

A

move the risk to others through waivers, insurance policies, etc.

41
Q

What is meant by risk reduction?

A

modify the risks by removing or altering part of the activity. reduction is preferred method for addressing risks in medium category

42
Q

What is meant by risk retention?

A

often, there are risks that will be retained, especially if the removal would eliminate potential benefits.

CPT (9 decks)

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