Chapter 1

Question 1

What word equates to the term “responsibility” as it is used in the insurance business?

Answer 1

Liability; the responsibility which falls upon persons because of their actions or arising from their ownership or use of something.

Question 2

What are three categories used to classify the way in which the law imposes liability?

Answer 2

Negligence
Nuisance
Breach of contract

Question 3

Tort

Answer 3

A civil wrong or injury recognized under law, other than a breach of contract, whereby an injured party acquires the right to sue the defendant, usually for a court award in the form of compensation.

Question 4

Negligence

Answer 4

Doing something that could foreseeably cause damage or injury to others.

Question 5

Private Nuisance

Answer 5

Interference with a person’s use and enjoyment of living area.

Question 6

Public Nuisance

Answer 6

Interference involving the rights of many people.

Only the Attorney General, the official representative of the public, may bring an action for public nuisance.

Question 7

Breach of Contract

Answer 7

When a party to a contract fails to honour the terms of the contract.

Question 8

Why does our system of civil justice impose responsibilities on people?

Answer 8

This imposition is a natural deterrent to irresponsible behaviour in both personal and corporate acts.

Question 9

Identify three levels of government that enact laws.

Answer 9

Federal - military, foreign relations, currency

Provincial - property, education, insurance

Municipal - local protection

Question 10

How does a liability policy protect businesses?

Answer 10

It shields them from legal fees and judgments that could potentially lead to bankruptcy.

Insurers provide financial resources and expertise to deal with claims covered under the policy, thereby preserving financial stability for these businesses.

Question 11

What types of rights are likely to be involved in civil lawsuits?

Answer 11

Individual rights, family relationships, estates, contracts, and in fact any dispute which does not involve a criminal or quasi-criminal act.

Question 12

What is a quasi-crime?

Answer 12

An offence that is not prohibited by the Criminal Code of Canada.

Question 13

Criminal Law

Answer 13

Criminal law seeks to determine guilt.

The criminal court seeks to punish an offender by imprisonment or fine or some other appropriate method.

Question 14

Civil Law

Answer 14

Civil law provides a judicial forum to assign fault by developing and interpreting common law principles and applying relevant statute law.

The civil court is concerned with setting appropriate compensation for the damages suffered and then obliging the liable party to pay this sum to the injured party.

Question 15

Very briefly review the history of the legal system in Quebec.

Answer 15

Customs of Paris (based on Roman law) - 1663

Napoleonic Code - 1763-1861

Civil Code of Lower Canada - 1866

Civil Code of Quebec - 1994

Question 16

What is the role of the court in Quebec in civil matters?

Answer 16

To settle disputes according to the specifications set out in the Code;

It’s role is not to make the law but interpret the law.

Question 17

What types of law comprise the common law system?

Answer 17

Case law precedent

Statute law - laws passed into written form by Parliament and provincial legislatures

Statute laws supersede case law precedent when one comes into conflict with the other - if the statute specifically covers the point in dispute.

Question 18

How are cases decided under the common law system?

Answer 18

The courts look upon cases that have already been decided for guidance on how to resolve cases currently in dispute.

Question 19

How is precedent set?

Answer 19

The court may organize a set of rules with specific criteria in a logical argument in its judgment to support its decision.

Question 20

What is the judicial hierarchy in the common law provinces?

Answer 20

Supreme Court of Canada decisions supersede any provincial court decisions, and decisions from a provincial superior court supersede decisions of lower courts of that province.

Local decisions have more influence than decisions from provinces other than the one where the incident took place.

Question 21

How is Quebec affected by case law?

Answer 21

Although Quebec courts are not bound by prior rulings or decisions, they tend to be effectively persuaded when arguments are supported by case law.

Question 22

Not every case can be tried in the Supreme Court of Canada. Explain why.

Answer 22

The Supreme Court must consent to hear them.

Generally, cases are selected on the basis of their national importance, or, to establish a precedent on some point of law.