Question 1

A husband and wife, Michelle and William, contacted an insurance agent for coverage for the wife's business, financed by the husband. The agent negligently arranged for insurance in William's name only. When Michelle suffered a loss, she thought it would be covered by the policy, she discovered that her business was not covered by the insurance. In the court action that followed:

Accepted Answer

E

Question 2

The professional under a contract implies promises to perform the services required in accordance with the standard for his or her profession, and a failure to do so would constitute ______________________.

Accepted Answer

B

Question 3

Most professionals are members of professional associations that are responsible for the establishment of

Accepted Answer

Professional associations often play a comprehensive role in the development and maintenance of professional standards. They are involved in setting the training and educational requirements necessary for entry into the profession, establishing standards of performance to ensure quality and competence among their members, and enforcing these standards through accreditation or licensing processes. This ensures that professionals meet the necessary qualifications and adhere to ethical and performance standards in their practice.

Question 4

Breach of contract cases usually are a result of careless or negligent performance of the professional service.

Accepted Answer

The answer of Breach of contract cases usually are a...

Question 5

Leonard was an entrepreneur who owned a restaurant business called, Blue Moon Diner Ltd. The business was located in an old house owned by Leonard. Lauren, the accountant, was preparing financial statements for the purpose of selling Blue Moon Diner Ltd. She assumed that the house was an asset of Blue Moon Diner Ltd. and did not review the land title or check with Leonard. Alicia purchased the business for $500,000, believing that the house was an asset worth $450,000 and the business was worth $50,000. Can Alicia sue Lauren?

Accepted Answer

Lauren, as the accountant preparing financial statements for the sale, had a duty of care to ensure the accuracy of those statements for potential buyers, including Alicia. By assuming the house was an asset of the business without verifying, Lauren breached the standard of care expected of an accountant, which could mislead buyers like Alicia.

Question 6

In solicitor-client privilege, the lawyer normally has no legal obligation to reveal any confidential information to legal authorities or to anyone, unless:

Accepted Answer

The exception to solicitor-client privilege regarding the revelation of confidential information is when the client provides authorization for the lawyer to do so. This allows the lawyer to share specific information with third parties as per the client's instructions.

Question 7

The normal approach for the engagement of the services of an architect is through a contract. Under the terms of the contract, the architect is usually expected to:

Accepted Answer

The answer of The normal approach for the engagement of...

Question 8

"Competent lawyer" means a lawyer who has and applies relevant skills, attributes, and values in a manner appropriate to each matter undertaken on behalf of a client.

Accepted Answer

A competent lawyer is indeed defined by their ability to apply relevant skills, attributes, and values appropriately to each client's case, ensuring they provide effective legal representation.

Question 9

The case of Hercules Management Ltd. v. Ernst and Young (1997) makes the following contribution to the law regarding professional liability of accountants at common law:

Accepted Answer

The case established that accountants do not owe a duty of care to shareholders for the purpose of making personal investment decisions, as their duty is primarily to the corporation itself.

Question 10

A professional is a person who possesses special knowledge or exercises special skills not normally possessed by most individuals.

Accepted Answer

A professional is indeed someone who has specialized knowledge or skills in a particular area, which distinguishes them from the general population who may not possess such expertise.

Question 11

Lisa, a three-year-old girl, was having her tonsils removed. Towards the end of the surgery, Dr. Talker answered her cell phone and failed to thoroughly check for sponges in Lisa's throat. Lisa choked to death. Can Lisa's family successfully sue Dr. Talker?

Accepted Answer

All of the responses correctly outline the elements necessary for a successful negligence claim: duty of care, breach of that duty (failure to meet the standard of care), causation (the breach caused the injury), and damages (injury leading to loss, in this case, death).

Question 12

Professional associations are not given the authority to limit the use of the professional designation to individuals who are members in good standing in the association, or to take action under the legislation to prevent anyone not a member in good standing from holding him or herself out to the public as a particular professional, or offering the professional services to the public.

Accepted Answer

Professional associations often have the authority to regulate who can use certain professional designations and offer services to the public in that profession. This is to ensure that individuals meet certain standards of education, experience, and ethics, thereby protecting the public interest.

Question 13

One of the obligations upon professionals acting in fields that can create tort liability is the obligation to _______________________ from the party who will be affected by the professional service.

Accepted Answer

The answer of One of the obligations upon professionals acting...

Question 14

Rose, a financial advisor, recommended that a client, Maureen, purchase shares in Mad Money Mutual Fund. Relying on Rose's recommendation the client purchased 100 units. The entire stock market collapsed, and the value of Mad Money Mutual Fund was reduced significantly. Maureen was surprised to learn that Rose earned a commission on each unit sold to her clients. Is Rose liable to Maureen?

Accepted Answer

Rose breached her fiduciary duty by not disclosing her commission, which is a conflict of interest that should have been transparent to Maureen.

Question 15

Manno had injured his knee and required laparoscopic knee surgery. During his appointment with the surgeon, Dr. Cutter, Manno was advised of the risks associated with the surgery including death and limited mobility in his knee. Dr. Cutter did not discuss scarring if traditional surgery was required. Manno signed the consent form. In the operating room, Dr. Cutter concluded that laparoscopic surgery would not repair Manno's knee and he had to make three large incisions in a traditional method. Manno's knee was repaired but he had three large, unattractive scars. Manno was a male model. Can Manno successfully sue Dr. Cutter?

Accepted Answer

Dr. Cutter failed to inform Manno of the potential for large, unattractive scars, which is a significant risk especially considering Manno's career as a model. This omission could be seen as a failure to obtain fully informed consent.

Question 16

A successful negligence suit against a member of a profession must measure the ________________ of the particular practitioner with that prescribed by the profession in general and must show in the evidence that the practitioner failed to meet that standard.

Accepted Answer

The answer of A successful negligence suit against a member...

Question 17

If an engineer designs a bridge without consideration for the weight of traffic that would travel over the bridge, and the bridge collapses, the engineer may be

Accepted Answer

The engineer would be considered negligent for failing to consider a critical aspect of the bridge's design (the weight of traffic), which is a fundamental responsibility in ensuring the safety and functionality of the structure. This negligence directly leading to the bridge's collapse and subsequent loss or injury makes the engineer liable for those consequences.

Question 18

For many professions, the standard of care extends beyond the single performance of the service, and the professional may also be required to

Accepted Answer

The answer of For many professions, the standard of care...

Question 19

A duty to place a client's interest above the professional's own interests is known as:

Accepted Answer

Fiduciary duty refers to the obligation to act in the best interest of another party. For example, a lawyer has a fiduciary duty to their client, meaning they must prioritize the client's interests above their own.

Question 20

It is suggested, but not legally required, that a lawyer recognize the limitations on his or her ability to handle a legal matter, and to take such steps as may be required to ensure that the client has appropriate advice, such as directing the client, if necessary, to another lawyer with greater expertise in the particular legal manner.

Accepted Answer

The answer of It is suggested, but not legally required,...

Quiz 6: Special Tort Liabilities of Business Professionals