Vocabulary

Question 1

Breach of contract

Answer 1

Failure, without legal excuse, to preform any promise that forms all or part of a contract.

Question 2

Civil law

Answer 2

The body of law concerned with civil or private rights and remedies, as contrasted with criminal law which deals with wrongs against society.

Question 3

Compensatory damages

Answer 3

Intended to compensate the injured party for the bodily injury or property damage sustained, and nothing more.

Question 4

Damages

Answer 4

An amount of money awarded to the person injured by another’s tort.

Question 5

Exemplary or punitive damages

Answer 5

Meant to punish the party that has caused an infringement of the other party’s legal rights. Awarded over and above compensation for monetary loss. Awarded when the wrong done to plaintiff is aggravated by violence, oppression, malice, fraud, or wanton and wicked conduct on the part of the defendant.

Question 6

General damages

Answer 6

Damages that cannot be quantified with precision in monetary terms, but reflect an amount that the court believes necessary to compensate the aggrieved party fairly.

Question 7

Nominal damages

Answer 7

A minimal amount awarded where there is no substantial loss or injury to be compensated, but where it is recognized that a plaintiff had a technical invasion of his rights.

Question 8

Rule of precedent

Answer 8

In common law, the basic concept that current court decisions must follow those made in cases with similar circumstances.

Question 9

Special damages

Answer 9

Damages that can be measured as to amount and are often referred to as out of pocket expenses.

Question 10

Statute law

Answer 10

The written law, created by federal and provincial legislation, which supersedes or amends the common law.

Question 11

Tort

Answer 11

A legal wrong, other than breach of contract, for which the court will provide a remedy in the form of a suit for damages. Three elements: existence of legal duty, breach of duty and causal relationship between the damages and the breach of duty.

Question 12

Doctrine of negligence

Answer 12

Based on the duty of all persons to exercise due care in their conduct towards others from which injury may result.

Question 13

Negligence

Answer 13

Failure to use that degree of care that an ordinary person of reasonable prudence would use under the given circumstance.

Question 14

Occupier

Answer 14

An occupant - a person who has use, possession or control of a thing.

Question 15

Strict liability

Answer 15

A person is presumed to be guilty of an offense without the requirement on the plaintiff to prove negligence. Generally applicable when injury or damage caused by dangerous activities, hazardous products.

Question 16

Loss exposure

Answer 16

As relates to risk management, the chance of financial loss to the organization as the result of a particular peril striking a thing of value.

Question 17

Retention

Answer 17

In risk management, includes all means of generating funds from within the business to pay for losses.

Question 18

Risk control

Answer 18

In risk management, the objective of risk control is to reduce the frequency and severity of losses as much as possible with the resources available.

Question 19

Risk management

Answer 19

The process of making and carrying out decisions that will minimize the adverse effects of accidental losses upon an organization.

Question 20

Segregation

Answer 20

In risk management, the arranging of an organization’s activities and resources so that no single event can cause simultaneous losses to all of them.

Question 21

Separation

Answer 21

In risk management, the dividing of an organization’s single assets or operation into two or more separate units.

Question 22

Nuisance

Answer 22

Everything that endangers life or health, gives offense to senses, violates the laws of decency, or obstructs reasonable and comfortable use of the property.

Question 23

Nuisance

Answer 23

Everything that endangers life or health, gives offense to senses, violates the laws of decency, or obstructs

Question 24

Defamation

Answer 24

Consists of a statement that causes unjustified injury to the reputation of another person and which results in the loss to that person of the esteem, confidence, respect and goodwill of a considerable part of the c

Question 25

Bill of Lading

Answer 25

A document issued by the carrier responsible for transporting or forwarding the goods.

Question 26

Agreed Value

Answer 26

A fair value of the shipment agreed to in advance by the insured and the insurer.

Question 27

Freight

Answer 27

The money payable either for the hire of a vessel or for the conveyance of cargo from one port to another.

Question 28

Actual Total Loss

Answer 28

A loss in which the subject property is totally lost or so badly damaged that it has no value left.

Question 29

Constructive Total Loss

Answer 29

Occurs when the cost of salvaging the cargo is too high relative to the value saved.

Question 30

Particular Average

Answer 30

Involves a partial loss to a specific shipment other than a General Average.

Question 31

General Average

Answer 31

Deals with payment for marine losses voluntarily incurred for the safety of the entire venture. The panties whose property was saved shall contribute to the losses of the parties whose property was sacrificed.

Question 32

Penalty

Answer 32

The amount of credit given to the principal by the surety or the amount which the surety is prepared to pay in the event the principal should default.

Question 33

Tangible Property

Answer 33

Property that is real, can be touched, and has form and substance.

Question 34

Segregation

Answer 34

Involves arranging an organization’s activities and resources so that no single event can cause simultaneous losses to all of them.

Question 35

Separation

Answer 35

Involves dividing an organization’s single asset or operation into 2 or more separate units.

Question 36

Duplication

Answer 36

Involves complete reproduction of an organization’s own standby asset or facility to keep in service.