Deck 34: Professionals Liability

Question 1

A professional's improper or immoral conduct in the performance of his or her duties through carelessness or lack of knowledge amounts to:

A) ignorance.
B) negligence.
C) malpractice.
D) nuisance.

Answer 1

C

Question 2

Competent parties are not liable for their negligence or their failure to meet their contractual obligations.

Answer 2

False

Question 3

If the attorney is in a specialized practice, such as real estate, family law, or immigration law, it is the performance of other attorneys engaged in similar practice by which he or she will be judged.

Answer 3

True

Question 4

Typically, architects and engineers are not licensed by states and do not need to pass various examinations.

Question 5

While everyone is subject to a lawsuit for negligence, suits by injured or damaged parties charging negligence frequently target:

A) customers.
B) government.
C) manufacturers.
D) professionals.

Question 6

The malpractice of a physician does not cause injury or loss to third parties, except in cases where the physician's negligence results in the patient's death or permanent disability.

Question 7

Directors and officers of corporations have been successfully sued for breach of their duty of loyalty and duty of care, resulting from negligence, error, or omission.

Question 8

It is not a requirement for the plaintiff to show that the defendant owed him or her a duty to either perform an action or not perform an action.

Question 9

Professionals generally are members of state and national __________ societies, such as bar associations or medical societies.

A) professional
B) organizational
C) insurance
D) commitment

Question 10

When the client relies on the financial planner's recommendations and suffers a loss, the financial planner cannot be sued for negligence.

Question 11

An attorney is not liable to a client if he or she fails to exercise due care in handling a client's affairs.

Question 12

When an agent or broker fails to recommend appropriate insurance and the buyer suffers a financial loss that could have been prevented or lessened, the agent or broker can be charged with negligence.

Question 13

In a malpractice lawsuit, the professional owes his or her client, as well as all third parties who are foreseeably impacted by the professional's work, a _______ to either perform an action or not to perform an action.

A) contract.
B) duty.
C) gesture.
D) promise.

Question 14

The distinction that developed between malpractice and other forms of negligence in part stems from the fact that the performance of certain professionals is known as a(n):

A) performance.
B) behavior.
C) practice.
D) employment.

Question 15

The distinction that developed between malpractice and other forms of negligence in part stems from the fact that the performance of certain professionals is known as a "practice" and the people served are referred to as "patients" or "clients" rather than customers.

Question 16

Malpractice on the part of insurance agents and brokers generally relates to either their failure to recommend the purchase of the right kind of insurance to protect against a specific type of loss or their failure to recommend appropriate amounts of coverage.

Question 17

Many professional groups conduct workshops and training sessions to help members of the profession reduce the risks that lead to negligent actions and the lawsuits that frequently result.

Question 18

An attorney is liable to a client if he or she fails to exercise due care in handling a client's affairs.

Question 19

Pharmacists who dispense drugs other than those specifically prescribed by authorized professionals, such as physicians, cannot be charged with malpractice if the incorrectly dispensed drugs cause injury to the legal user.

Question 20

Both architects and engineers are subject to lawsuits for negligence if their work results in injury to parties with whom they have contracted or to third parties.

Question 21

In a malpractice lawsuit, the plaintiff must show that the professional defendant's act or failure to act directly caused the injury or loss. This element of malpractice is called:

A) breach of duty.
B) negligence.
C) undue hardship.
D) proximate cause.

Question 22

A professional who designs devices or installations of a complex nature, such as bridges and power-generating stations is called a(n):

A) engineer.
B) architect.
C) designer.
D) executive.

Question 23

A _________ can be liable for failing to inform a patient of the risks involved in a particular surgery.

A) pharmacist
B) chemist
C) physician
D) nurse

Question 24

If insurance agents and brokers either fail to recommend the purchase of the right kind of insurance to protect against a specific type of loss or fail to recommend appropriate amounts of coverage, then it amounts to:

A) churning.
B) negligence.
C) malpractice.
D) embargoes.

Question 25

Insurance agents and insurance brokers are deemed to possess superior knowledge of insurance and to have the ability to use their expertise to protect buyers against various kinds of:

A) losses.
B) negligence.
C) malpractice.
D) churning.

Question 26

A lawsuit against the financial planner's intentional or negligent misstatement or nondisclosure of a material fact relating to an investment is brought for _____.

A) churning.
B) nuisance.
C) unsuitability.
D) misrepresentation.

Question 27

The following are subject to lawsuits for negligence when they fail to perform according to the standards expected of them, EXCEPT:

A) directors and officers of corporations.
B) educators.
C) travel agents.
D) consumers.

Question 28

The financial planner's unreasonably excessive buying or selling of securities to generate commission is known as:

A) churning.
B) negligence.
C) misrepresentation.
D) fraud.

Question 29

A profession in which practitioners attempt to advise their clients, who can be either individuals or businesses, of the best ways to manage their financial affairs is known as:

A) strategic planning.
B) corporate structuring.
C) market planning.
D) financial planning.

Question 30

An attorney can be found to have committed malpractice if he or she fails to act in a timely fashion in filing claims or bringing suit before the ___________ expires.

A) liability limitation
B) limitations of law
C) statute of limitations
D) limitation of pleadings

Question 31

A person who dispenses drugs other than those specifically prescribed by authorized professionals such as physicians also can be charged with malpractice if the incorrectly dispensed drugs cause injury to the legal user. Such a person is known as a:

A) pharmacist.
B) physician.
C) psychiatrist.
D) nurse.

Question 32

It has been held that when, as a result of his or her negligence, the accountant fails to discover or conceals evidence that a client's employee has been embezzling funds, an accountant is liable only to his or her:

A) agent.
B) company.
C) client.
D) partner.

Question 33

All of the following EXCEPT a _____ who learns from a patient that he or she intends to do harm to another has the legal responsibility to inform the possible victim and the appropriate authorities.

A) physician
B) psychiatrist
C) nurse
D) discologist

Question 34

A lawsuit against the financial planner's deliberate obstruction of the client's desire to transfer one or more accounts to another professional is brought for _____.

A) unauthorized trading.
B) transfer of account problems.
C) fraud or misrepresentation.
D) churning.

Question 35

If an attorney fails to properly investigate matters related to a client's case, such as seeking clear title to property in real estate matters or interviewing witnesses in criminal matters, _____ can be established.

A) negligence.
B) malpractice.
C) unethical behavior.
D) churning.

Question 36

Many states require continuing education for certain professionals in order for the individuals in the professions to retain their:

A) standards.
B) accommodations.
C) licenses.
D) acquaintances.

Question 37

__________ of insurance look to agents and brokers to recommend appropriate coverage.

A) Sellers
B) Buyers
C) Directors
D) Executives

Question 38

The malpractice of a physician does not cause injury or loss to third parties, except when the patient dies or is permanently disabled because of the physician's:

A) temperament.
B) negligence.
C) attitude.
D) observation.

Question 39

The ones who are subject to lawsuits for negligence if their work results in injury to parties with whom they have contracted, or to third parties, are:

A) chiropodists.
B) discologists.
C) discographers.
D) architects.

Question 40

When the client relies on the financial planner's recommendations and suffers a loss, the financial planner can be sued for:

A) libel.
B) battery.
C) negligence.
D) nuisance.

Question 41

Discuss any two elements of malpractice.

Question 42

Explain how professionals protect themselves against the losses that might result from being found liable for malpractice or negligence.

Question 43

Discuss the liability of attorneys in professional malpractice.