Ch8: Basics of Legal Liability

Question 1

What are the two types of legal systems in Canada

Answer 1

Criminal Law = not insurable
Civil Law

Question 2

What is the purpose of civil law

Answer 2

addresses disputes between parties by compensating the wronged party

Question 3

Define statute law?

Answer 3

written law - supersedes common law (created by legislation)

Question 4

What are the two branches of civil law

Answer 4

Contract and Tort Law

Question 5

What is contract law?

Answer 5

enforces contracts; remedies breach of contract by enforcing performance

Question 6

What is Tort law

Answer 6

negligence, trespassing, false arrest etc

Question 7

Define tort

Answer 7

private wrong other than breach of contract that causes damage

Question 8

what are the three elements of Tort?

Answer 8

Legal duty owed, Legal duty breached and damages directly resulted

Question 9

What are the two kinds of Torts?

Answer 9

Unintentional and Intentional torts

Question 10

What happens when strict liability applies to your tort?

Answer 10

the person is considered automatically responsible - meaning if you get sued for strict liability the other person only has to prove damages resulted.

Question 11

Define a Tortfeasor

Answer 11

someone who commits a wrong against an innocent party (defendant)

Question 12

Define a Joint tortfeasor

Answer 12

two (or more) people acting together to cause damage

Question 13

Define negligence

Answer 13

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

Question 14

Define Foreseeability (applied to negligence)

Answer 14

the defendant is considered not negligent if the outcome wasn’t reasonably foreseeable

Question 15

What is ownership of property

Answer 15

different common law duties owed to different types of people entering your premises

Question 16

Define a trespasser and the duty owed?

Answer 16

someone who enters without the occupiers permission
owed: no traps or intentional harm

Question 17

Define a licensee and the duty owed?

Answer 17

someone entering for their own purpose with permission from occupier
owed: warn of any hazards known to occupier

Question 18

define an invitee and the duty owed?

Answer 18

invited in for the benefit of the occupier
owed: protect against dangers known or might reasonably discover

ie. business purpose + customers who purchase products

Question 19

define the protections to children and the duty owed

Answer 19

are protected by the law (lack judgement to avoid risk)
owed: premises must be safe from all dangers (take all reasonable steps)

Question 20

what is the occupiers liability act and the duties owed?

Answer 20

this combines both licensees and invitees into one category called “visitor”
duty: make sure they’re safe for the duration/purpose of their visit

Question 21

define outside premises and the duty owed?

Answer 21

make sure nothing leaks out (safe for people to pass by)
owed: related to the use of the building as well as the maintenance of the build

Question 22

what is the liability of the landlord

Answer 22

liable when incorrectly warrens fitness for a particular use or conceal an adverse condition

Question 23

When is a landlord liable?

Answer 23

renting furnished premises, landlord agrees to maintain premises but fails after responsible notice was given, and common areas

Question 24

describe the liability of tenant to landlord in Tort law

Answer 24

liable for damages caused by negligence

Question 25

describe the liability of tenant to landlord in Contract Law

Answer 25

for liability assumed by tenant in the lease agreement

Question 26

What are the liability for children

Answer 26

kids are responsible for their own actions unless you can prove lack of understanding of the consequences

Question 27

When are parents liable for their children

Answer 27

1. fail to supervise the child
   damage was caused by a dangerous thing given to the child by parents
   child acting on authority of parents
   child working in a parents business (if damages result from duties given to child)

Question 28

define a bailee for hire

Answer 28

one who has temporary custody of property of others for purpose other than sale and is compensated

Question 29

describe the liabilities for bailees for hire

Answer 29

tort law requires ordinary care; liable when duty is breached by negligence and contractual liability

Question 30

Describe employers liability

Answer 30

employees are vicariously liable for employee torts while in course of their duties

Question 31

Employers are not liable when

Answer 31

employees delegate their duties to someone else without employers consent
on a frolic of their own: ie unauthorized time away from business
unauthorized use of employers property

Question 32

what is an Employers liability for injuries

Answer 32

legal duties established in the Workers Compensation Act

Question 33

when are contractors held liable (for contractor negligence)

Answer 33

work is inherently dangerous
insured supplies defective material or equipment
insured controls the work
work must be reasonable and insured must have been careful ehrn selecting a contractor

Question 34

Describe the liability for Domestic and Wild animals

Answer 34

Domestic: owner is liable on the first bite
Wild: strictly liable for any damages caused by animal

Question 35

Define joint liability

Answer 35

multiple parties act negligently together

Question 36

explain an insuring agreement

Answer 36

pays legally obligated compensation to 3rd parties for losses in policy period + territory.

Question 37

Define bodily injury

Answer 37

Bodily injury from an external source (physical)
sickness (internal)
death - resulting from the above sources

Question 38

define property damage

Answer 38

physical injury to tangible property including loss of use to undamaged property.

Question 39

Third party coverage only covers

Answer 39

parties not named on policy

Question 40

define compensatory damage

Answer 40

meant to compensate the wronged party for injury (only kind of insurable damage)

Question 41

describe coverage on occurrence basis

Answer 41

the policy in force at the time the loss is occurred is the one that pays

Question 42

define occurrence

Answer 42

accident including long-time exposure

Question 43

define accident

Answer 43

sudden and unexpected, occurs at a particular point in time.

Question 44

define continuous exposure

Answer 44

occurs over a long period of time

Question 45

describe the two limits of insurance

Answer 45

aggregate limit: max for all claims during policy period
split limits: separate limits for per-person injury (all people and property)

Question 46

Describe the duties in an event of an occurrence or claim

Answer 46

Prompt notice to insurer
Assist in investigation, settlement, or defense
Legal papers: must be immediately forwarded to insurer
Authorize insurer to obtain information
Cannot make voluntary payment other than first aid

Question 47

Define a supplementary payment

Answer 47

(paid on top of limit of insurance)
cost of defense + expenses of insured to assist + court costs + interest payable

Question 48

List the 5 supplementary payment types

Answer 48

1. reasonable expenses
2. emergency medical expenses
3. court costs
4. bond premiums
5. interest payable on the account