Business Law In canada 11th Edition By Yates -Test Bank

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Business Law In canada 11th Edition By Yates -Test Bank

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Business Law In canada 11th Edition By Yates -Test Bank

Business Law in Canada, 11e (Yates)

Chapter 5   Negligence, Professional Liability, and Insurance

 

1) A seven-year-old boy followed his dog into Mr. Howes backyard. He fell into a large hole dug by Mr. Howe in preparation for a tree that had been ordered. The boy broke his arm in the fall. At the hospital, the boy was treated by a doctor who had been employed there for four years. The doctor did not set the boys arm because he made a mistake in reading the x-ray. Because the arm was not treated correctly, it healed improperly. When the boy kept complaining, his mother took him to their family doctor, who discovered the error. The boy had to have his arm rebroken so that it could be set properly. Based on these facts, which of the following is true?

  1. A) The owner of the land owed no duty of care to the boy because the boy was a trespasser.
  2. B) The case law that developed over hundreds of years on the duty of care owed by occupiers of land has priority over any subsequent legislation on the point.
  3. C) The doctor owed a duty of care to the boy, but he only had to meet the standard of care expected of the average man.
  4. D) The hospital, not the doctor, would be solely liable for any harm suffered due to the negligence.
  5. E) In an action against the land owner, if the boy were found to be partially at fault for his injury, the court would apportion the award of damages as it apportioned the fault.

Answer:  E

Diff: 3      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 1. Identify the four elements of a negligence claim.

Blooms Taxonomy:  Knowledge

 

2) Which of the following situations could not result in a successful action for negligence?

  1. A) When Todd was setting up a tent for a backyard wedding, he fell into a hole and broke his leg. The owner forgot to tell the wedding planner that he had been digging a hole to put in a fish pond.
  2. B) An employee of the bank mistakenly wrote to Maria saying that the bank had approved her loan. Relying on that letter, Maria made contracts she could not honour when the bank refused to forward the money. Maria lost $10,000 because of the banks carelessness.
  3. C) A driver, trying to see what a movie crew was doing, accidentally plowed his car into the side of a catering truck.
  4. D) Nikki almost upset a glass table and broke an expensive vase when she yanked on a large cable without checking what was blocking its path.
  5. E) A real estate agent, fed up with his client, punches him in the nose when he changes his mind about selling his condo.

Answer:  D

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 1. Identify the four elements of a negligence claim.

Blooms Taxonomy:  Knowledge

 

3) Two real estate agents, pressed for time, stopped at the bakery for some muffins that would suffice as lunch. John bought the muffins and gave one to Mary. They both began to eat the muffins as they hurried to the car. When Mary looked at the muffin she had just bitten, she saw that the raisins had little worms in them. Johns muffins were the samewith little worms. Based on these facts, which of the following possibilities is true? (Read each independently from the others.)

  1. A) Since Mary did not buy the muffins, she could not sue in contract, but if she were injured, she could sue in tort.
  2. B) Even if Mary was not injured by eating the worms, she could sue the baker of the muffins for nuisance.
  3. C) If Mary sued the baker of the muffins or the packer of the raisins, she would have to prove only one thing to win her casethat there were worms in the muffin.
  4. D) Mary has a cause of action against the baker of the muffins only if she can prove that the baker used bad raisins on purpose.
  5. E) Mary can do nothing since she did not purchase the muffins.

Answer:  A

Diff: 3      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 1. Identify the four elements of a negligence claim.

Blooms Taxonomy:  Knowledge

 

4) Which of the following situations could result in a successful action for negligence?

  1. A) George deliberately broke an expensive camera when he yanked on a large cable.
  2. B) When Eric was setting up the lighting in a backyard rented for a night shoot, he fell into a hole and broke his leg. The owner had previously notified the director that he had been digging a hole to plant an apple tree.
  3. C) An employee of the bank mistakenly wrote to Sean saying that the bank had approved his loan. Relying on that letter, Sean made contracts he could not honour when the bank refused to forward the money. Sean lost $100,000 because of the banks carelessness.
  4. D) A doctor, acting in the best interest of his patient Alex (who had lost blood after a serious cut), gave him a transfusion even though Alex told him explicitly not to do so.
  5. E) Dr. Jones used the skill of a reasonable doctor in his field, but the patient did not respond to the treatment and lost sight in one eye. The patient sued the doctor.

Answer:  C

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 2. State when a duty of care arises, explaining how courts determine whether it is owed.

Blooms Taxonomy:  Knowledge

 

5) Sam and John drank beer and watched the Olympics for hours. When John left, he did not feel impaired, but the alcohol in his system affected his driving. He lost control of his car, which crashed through Mr. Mitsus fence and into Mr. Mitsus garage. Mitsus neighbour, Mr. Watson, called the police. John was charged with driving while impaired and was found guilty in the criminal proceedings. Given these facts, which of the following is true?

  1. A) Mr. Watson, the neighbour, could sue John for negligence.
  2. B) Mr. Mitsu could sue John for negligence.
  3. C) If Mr. Mitsu sued John, he would be entitled only to punitive damages.
  4. D) Because John was charged with an offence, Mr. Mitsu cannot sue him in a civil action for compensation. One court action is all that is allowed.
  5. E) Since no one was physically injured, there could be no civil action.

Answer:  B

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 2. State when a duty of care arises, explaining how courts determine whether it is owed.

Blooms Taxonomy:  Knowledge

 

6) In which of the following cases is a legal duty not owed?

  1. A) A person undertakes to rescue someone in danger
  2. B) It would be apparent to a prudent person that the conduct was likely to cause injury
  3. C) A person making a misstatement knew that it would be relied on by a member of a group
  4. D) A visitor comes on your property
  5. E) A person sees another in desperate need of assistance

Answer:  E

Diff: 1      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Recall

Objective:  Chapter 5: 2. State when a duty of care arises, explaining how courts determine whether it is owed.

Blooms Taxonomy:  Knowledge

 

 

7) Which of the following statements with regard to the tort of negligence is false?

  1. A) If a person is injured by a defective product that he himself did not purchase, he can sue the manufacturer for negligence.
  2. B) If the court finds contributory negligence, the defendant has no liability at all.
  3. C) If physical injury can be foreseen as the result of a persons negligence, the wrongdoer will be liable for all the injury suffered although the person injured was unusually weak and infirm.
  4. D) A possible defence to the plaintiffs claim of negligence is that the plaintiff volunteered to take the risk.
  5. E) The test used to determine whether a duty of care is owed is this: would a reasonable person foresee that the plaintiff could be affected by the acts of the defendant?

Answer:  B

Diff: 1      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Recall

Objective:  Chapter 5: 2. State when a duty of care arises, explaining how courts determine whether it is owed.

Blooms Taxonomy:  Knowledge

8) Because of the North American Free Trade Agreement and increasing world competition, a provincial government decided to help businesses by providing more information about market conditions, currencies, etc., around the world. It opened small offices throughout the province that provided business information retrieved from the governments database, which was frequently updated. Mr. Hill relied on some information given to him by Alex Chec, an employee of the government. The information was wrong due to Checs mistake; it was his job to cross-check that information before it was released to the public, but he forgot to do it. Mr. Hill suffered a $15,000 loss because of the error. Which of the following is true?

  1. A) Mr. Hill cannot take any action because he suffered no physical injury. The case only deals with information.
  2. B) If Mr. Hill sues the government on the principle of vicarious liability, he cannot also sue the employee at fault.
  3. C) On these facts, Mr. Hill could sue successfully on the principle of strict liability.
  4. D) Mr. Hill could not take any action because he had not entered into a contract with the government for this information.
  5. E) To win in an action against the government, Hill must prove that the government owed him a duty of care, fell below the standard of care owed, and thereby caused him a foreseeable loss.

Answer:  E

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 2. State when a duty of care arises, explaining how courts determine whether it is owed.

Blooms Taxonomy:  Knowledge

 

 

9) Which of the following statements best describes the standard used by the courts to measure socially acceptable behaviour?

  1. A) An average person acting normally
  2. B) A careful person acting to the best of his ability
  3. C) A reasonably prudent person acting in a careful manner
  4. D) The best possible response to the circumstance
  5. E) When you cause injury, you are always liable.

Answer:  C

Diff: 1      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Recall

Objective:  Chapter 5: 2. State when a duty of care arises, explaining how courts determine whether it is owed.

Blooms Taxonomy:  Knowledge

10) In which of the following would the plaintiff not succeed in an action for negligence?

  1. A) A zoning officer carelessly told Mr. Lee that the lot was zoned commercial, but it was really zoned duplex. Lee lost $85,000 by relying on this information.
  2. B) An accounting firm made a mistake in the audited financial statements, which caused an investor to lose $20,000. The firm knew the investor was going to rely on the statements to invest.
  3. C) May was made sick by drinking a contaminated cola, bottled by Black, bought for her by her friend Fred from Green.
  4. D) Dr. Zotsky used the skill of a reasonable doctor in his field, but his patient did not respond to the treatment and lost sight in one eye.
  5. E) Nick was a willing passenger when Alex was driving at 140 km/h. He was hurt when the car slid on wet pavement and crashed. The court found Nick took the physical risk, but never took the legal risk.

Answer:  D

Diff: 2      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Applied

Objective:  Chapter 5: 3. Describe breach of the standard of care, identifying the test used to determine if a breach has occurred.

Blooms Taxonomy:  Knowledge

 

 

11) The director of the childrens zoo, Mr. Watson, was appalled to see an employee, Jake, throwing a pitchfork like a javelin in an area where there were both animals and children. Luckily, no one was hurt. He yelled to Jake to get busy and feed the birds so that the birds would come closer to the children. Jake opened a new sealed bag of feed and threw some to the birds. It happened that the manufacturer of the feed, ordered by Watson, had accidentally mixed some caustic substance with the feed, so that later in the day Jakes hand began to blister badly. Jake sued Watson for negligence because of the burns he suffered; Watson sued Jake for negligence because of the way Jake used the pitchfork. On these facts, which of the following is true?

  1. A) Jake will be found liable for negligence because he was careless with the pitchfork; a reasonable person would not have done what he did.
  2. B) The test the court will apply to determine whether or not Jake owed a duty of care is this: would a reasonable person foresee that his acts could affect the animals and children?
  3. C) Watson owed Jake a duty of care and Watson will, therefore, be liable for negligence.
  4. D) Children attending a zoo are voluntarily assuming any risk.
  5. E) Jake could not sue the manufacturer because he did not buy the feed.

Answer:  B

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 3. Describe breach of the standard of care, identifying the test used to determine if a breach has occurred.

Blooms Taxonomy:  Knowledge

12) Al bought a case of beer because his friends were coming over to watch the Grey Cup game. During the game, Al opened a beer, poured about a third of it into Bobs glass, and handed the can to Chuck. Bob noticed the strange orange colour of the beer and called everyones attention to it; unfortunately, Chuck had drunk most of the beer from the can before he heard Bob. There had been a small battery in the can that contaminated the beer. Chuck was seriously injured. On these facts, which of the following is true?

  1. A) Since Chuck did not buy the beer, he has no cause of action against anyone.
  2. B) Chuck could sue Al successfully for negligence because Al handed the contaminated beer to Chuck.
  3. C) Bob could sue Al successfully for negligence because Al poured the contaminated beer in Bobs glass.
  4. D) Because Chuck did not buy the beer, he could not sue the seller for breach of contract, but he could sue the beer manufacturer in tort.
  5. E) Bob could successfully sue the manufacturer for negligence because he need only prove that the manufacturer owed him a duty of care and need not prove damages.

Answer:  D

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 3. Describe breach of the standard of care, identifying the test used to determine if a breach has occurred.

Blooms Taxonomy:  Knowledge

 

 

13) The provincial government thought that the only way to make businesses competitive with those from other countries was to make more information available to them about market conditions, currencies, etc., around the world. It began a program of incentives that included a government office that would give people not only the business information but also advice on how the businesses could link up to the governments database that held the updated information. Mr. Su relied on some information given to him by Alex Chec, an employee of the government. The information was wrong due to a mistake made by an operator entering data. It was Mr. Checs job to cross-check that information before it was released to the public. He forgot to do it. Mr. Su suffered a $100,000 loss because of the error. Which of the following is true?

  1. A) If Mr. Su sues the government on the principle of vicarious liability, he cannot also sue the employee, or employees, at fault.
  2. B) Mr. Su could not take any action because he suffered no physical injury. The case only deals with information.
  3. C) The court must find only one party liable and that party must pay for all of the damages.
  4. D) Mr. Su could not take any action because he had not entered into a contract with the government for this information.
  5. E) The operator may be found liable for negligence if Su, the plaintiff, can prove, among other things, that he owed him a duty of care.

Answer:  E

Diff: 3      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 2. State when a duty of care arises, explaining how courts determine whether it is owed.

Blooms Taxonomy:  Knowledge

 

14) As a result of careless driving, Mr. Boz accidentally knocked Mr. Alder, a seventy-year-old man, off his bike. Mr. Alder broke his arm and collar bone. Because of a rare disease, there was little likelihood that the breaks would heal properly, if at all. In effect, unlike most who would suffer those breaks, he lost the use of his right arm. Mr. Alder sued Boz for negligence. The court held Boz liable. With regard to the question of the amount of damages to be paid by the defendant, which of the following is correct?

  1. A) It should be an amount to cover the full extent of the injury suffered.
  2. B) It should be an amount to cover the extent of injury that would have been suffered by a reasonable man.
  3. C) It should be an amount to cover the extent of injury that would have been suffered by the average man.
  4. D) In should be an amount to cover the extent of injury that would have been suffered by the average seventy-year-old man, because a reasonable man would not have foreseen the extent of injury actually suffered.
  5. E) It should be no compensation at all because of Mr. Alders rare condition.

Answer:  A

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 3. Describe breach of the standard of care, identifying the test used to determine if a breach has occurred.

Blooms Taxonomy:  Knowledge

 

15) Which of the following is true with respect to the law of tort?

  1. A) With assault and battery, a person can successfully sue only if they can prove damages.
  2. B) A negligent person causing physical injury to another is responsible to the full extent of the injury suffered even though the injured person suffered more than would reasonably be expected because of a special weakness.
  3. C) A person will always succeed with the defence of self-defence even if he used excessive force.
  4. D) A customer battered by an employee on the job can sue only the employee, not the employer, because it was the employee who did the wrong.
  5. E) For fair comment to be an effective legal defence to a claim of defamation, the person making the comment must have been made in Parliament or court.

Answer:  B

Diff: 2      Type: MC      Page Ref: 135

Topic:  Ch. 5 Negligence

Skill:  Recall

Objective:  Chapter 5: 3. Describe breach of the standard of care, identifying the test used to determine if a breach has occurred.

Blooms Taxonomy:  Knowledge

 

16) You and your friend recently bought a duplex. You rent out the downstairs and live in the upstairs suite. As the owner and occupier, you have acquired certain rights and responsibilities. Which of the following statements about the law relating to land is true?

  1. A) You could sue for the tort of negligence if someone used his property in such a way that it interfered with your use and enjoyment of your property.
  2. B) The use of your property is partly governed by the Personal Property Securities Act.
  3. C) If you bring something onto your property that is inherently dangerous and it escapes causing damage to others, you will be liable even if you were very careful and did not intend to harm anyone.
  4. D) If there were an accident out front and a car was knocked onto your yard, you could sue the driver in that car for trespass.
  5. E) Your tenants have no duty to take reasonable steps to make sure that any person is reasonably safe when in their suite.

Answer:  C

Diff: 2      Type: MC      Page Ref: 155

Topic:  Ch. 5 Occupiers Liability

Skill:  Applied

Objective:  Chapter 5: 4. Explain how both physical and legal causation and damage are proven.

Blooms Taxonomy:  Knowledge

 

17) Creative Farming Ltd. manufactures fertilizer from organic matter, a by-product of which is explosive methane gas. During the processing, some of this gas escaped and drifted onto the adjacent property, where it caused an explosion and extensively damaged a building owned by XYZ Co. Creative Farming Ltd. would be liable for the loss under which one of the following principles?

  1. A) Strict liability
  2. B) Vicarious liability
  3. C) Product liability
  4. D) Occupiers Liability Act
  5. E) Contributory negligence

Answer:  A

Diff: 1      Type: MC      Page Ref: 157

Topic:  Ch. 5 Strict Liability

Skill:  Applied

Objective:  Chapter 5: 4. Explain how both physical and legal causation and damage are proven.

Blooms Taxonomy:  Knowledge

 

18) In Hall v. Hebert, an individual was severely injured when he allowed his intoxicated friend to drive his car. The Supreme Court of Canada had to deal with whether volenti non fit injuria would apply. What did the Court hold?

  1. A) The plaintiff assumed neither the physical risk nor the legal risk in the circumstances.
  2. B) The plaintiff assumed only the legal risk, but this is all that is required for volenti non fit injuria to apply.
  3. C) The plaintiff assumed only the physical risk, but this is all that is required for volenti non fit injuria to apply.
  4. D) The plaintiff assumed the physical risk, but there was no indication he had assumed the legal risk as well.
  5. E) The plaintiff assumed the legal risk, but there was no indication he had assumed the physical risk as well.

Answer:  D

Diff: 3      Type: MC      Page Ref: 154

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 4. Explain how both physical and legal causation and damage are proven.

Blooms Taxonomy:  Knowledge

 

19) Which of the following statements with regard to the tort of negligence is true?

  1. A) If a person is injured by a defective product that he himself did not purchase, he cannot sue the manufacturer for negligence.
  2. B) If the court finds contributory negligence, the defendant has no liability at all.
  3. C) If physical injury can be foreseen as the result of a persons actions, the wrongdoer will be not be liable for all the injury suffered.
  4. D) A possible defence to the plaintiffs claim of negligence is that the plaintiff volunteered to take the risk.
  5. E) The test used to determine whether a duty of care is owed is this: would a below-average person foresee that the plaintiff could be affected by the acts of the defendant?

Answer:  D

Diff: 2      Type: MC      Page Ref: 151

Topic:  Ch. 5 Defences

Skill:  Applied

Objective:  Chapter 5: 4. Explain how both physical and legal causation and damage are proven.

Blooms Taxonomy:  Knowledge

 

 

20) Raheel wants to sue a manufacturer who he believes was careless during the manufacturing process. What do the courts do to make this easier on people like Raheel?

  1. A) The courts are willing to imply a rebuttable presumption of breach of duty from the circumstantial evidence of the injury or loss.
  2. B) The courts are willing to award legal costs to plaintiffs who bring forward these claims, regardless of their success at trial.
  3. C) The courts are willing to waive the usual rules of evidence in the favour of the plaintiff.
  4. D) The courts are willing to construe the evidence in favour of the plaintiff using the contra proferentum
  5. E) The courts are willing to disregard the requirement of a duty of care.

Answer:  A

Diff: 1      Type: MC      Page Ref: 158

Topic:  Ch. 5 Product Liability

Skill:  Applied

Objective:  Chapter 5: 5. Distinguish the defences applicable to the tort of negligence.

Blooms Taxonomy:  Knowledge

21) Stella bought a cup of coffee at the drive-through window at a coffee shop. Holding the cup between her knees and attempting to take off the lid to add cream, she spilled the coffee. She suffered burns to her thighs. If this happened in Canada, which of the following would be true?

  1. A) If Stella sues the coffee shop for negligence, she will only have to prove that the company owed her a duty of care.
  2. B) If Stella sues the coffee shop, the companys best argument is that it didnt owe her a duty of care.
  3. C) To succeed with the defence that she volunteered to take the risk, the coffee shop would have to prove that she deliberately spilled the coffee.
  4. D) If the coffee shop claims there was no way to reasonably foresee that Stella would be harmed, the plaintiffs case would be dismissed even though she suffered burns.
  5. E) If the court finds the plaintiff contributorily negligent causing 60% of her loss, she will not be compensated for the 60% by the defendant.

Answer:  E

Diff: 2      Type: MC      Page Ref: 151

Topic:  Ch. 5 Defences

Skill:  Applied

Objective:  Chapter 5: 5. Distinguish the defences applicable to the tort of negligence.

Blooms Taxonomy:  Knowledge

 

 

22) Celebrating the end of the fall term, Mr. C had already drunk six beers before he arrived with his friends at the Spoke Tavern, run by the student council. After he had two more beers, he was refused more and told he would be asked to leave if he did have more. He returned to the table and continued to drink. He was ordered to leave. While being escorted out, he resisted but was ejected. He snuck back in, spoiling for a fight, and was removed once more. He returned, and when pushed through the doorway, he stumbled. His hand went through a small window, and he had to undergo surgery to repair a tendon in his wrist. Mr. C sued the tavern, the bouncer, and the student council (as operators of the tavern) under the Occupiers Liability Act. Read each of the following separately and indicate which is false.

  1. A) The Occupiers Liability Act in this province provides that an occupier of land owes a duty to take reasonable steps to make sure that any person will be reasonably safe.
  2. B) If the court holds that Mr. C voluntarily took the risk, Mr. C will get no award of damages from the defendants.
  3. C) To successfully use the defence of volenti no fit injuria (he volunteered to take the risk), the court must find that the plaintiff knew the risk, volunteered to take the risk, and expressly or impliedly waived his right of action.
  4. D) If the court holds that Mr. C was contributorily negligent, Mr. C could get no compensation from the defendants.
  5. E) Under our Occupiers Liability Act, a tenant could be liable, not just the land owner.

Answer:  D

Diff: 3      Type: MC      Page Ref: 151

Topic:  Ch. 5 Defences

Skill:  Applied

Objective:  Chapter 5: 5. Distinguish the defences applicable to the tort of negligence.

Blooms Taxonomy:  Knowledge

23) With regard to the law of negligence, which of the following is false?

  1. A) If the court finds that the plaintiff was 40% and the defendant 60% responsible for the loss suffered by the plaintiff, the plaintiff cannot recover the 40% from the defendant.
  2. B) Some occupiers liability acts set the standard of care owed by the occupier, namely, to take reasonable care that any person is reasonably safe.
  3. C) To win his action in negligence, a plaintiff must prove, among other things, that the defendant owed the plaintiff a duty of care.
  4. D) If you hurt someone and are sued for negligence, a possible defence is that you didnt intend to hurt the person.
  5. E) If you are negligent and cause damage to another, a possible defence is that the other voluntarily took the risk.

Answer:  D

Diff: 2      Type: MC      Page Ref: 151

Topic:  Ch. 5 Defences

Skill:  Applied

Objective:  Chapter 5: 5. Distinguish the defences applicable to the tort of negligence.

Blooms Taxonomy:  Knowledge

 

 

24) Pete and John had been hired by the same computer consulting company. They worked a 3-hour shift and walked to a pub, where they had several beers. John said hed drive Pete home. Pete knew John had been drinking but agreed to go with him anyway. The alcohol affected Johns driving. He lost control of the car, which crashed through Mr. Britts fence and Britts garage. Pete was injured. John was not injured. Britts neighbour, Mr. Watson, called the police. John was charged with the offence of driving while impaired and was found guilty in the criminal proceedings. Given these facts, which of the following is true?

  1. A) Since Mr. Britt was not physically injured, he could not sue.
  2. B) Mr. Watson, the neighbour, could successfully sue John for negligence.
  3. C) Pete could sue John for negligence, but if the court held that Pete volunteered to take the physical and legal risk (volenti non fit injuria), Pete would get no award of damages.
  4. D) The principle of vicarious liability is relevant here because John was an employee at the time of the accident. John was charged with an offence; no one could sue him in a civil action for compensation.
  5. E) One court action is all that is allowed.

Answer:  C

Diff: 2      Type: MC      Page Ref: 151

Topic:  Ch. 5 Defences

Skill:  Applied

Objective:  Chapter 5: 5. Distinguish the defences applicable to the tort of negligence.

Blooms Taxonomy:  Knowledge

25) Which of the following statements with regard to the tort of negligence is false?

  1. A) If a person is injured by a defective product that he himself did not purchase, he can sue the manufacturer for negligence.
  2. B) To win his negligence case, the plaintiff must prove that the defendant owed him a duty of care, was below the standard of care the law requires, and thus caused him foreseeable damage.
  3. C) In most provinces, the standard of care imposed on an occupier has been modified by statute.
  4. D) For a person to completely escape liability for negligence on the grounds that the plaintiff volunteered to take the risk, the court would have to find that the plaintiff volunteered to accept the physical risk and the legal consequences as well.
  5. E) In negligence cases, the special provision of res ipsa loquitor must always be applied in order to establish liability.

Answer:  E

Diff: 3      Type: MC      Page Ref: 151

Topic:  Ch. 5 Defences

Skill:  Recall

Objective:  Chapter 5: 5. Distinguish the defences applicable to the tort of negligence.

Blooms Taxonomy:  Knowledge

 

 

26) Hank rented a new ground-floor condominium for four months before the owner offered to sell it to him. Hank accepted the offer. After Hank became the owner, he built a small patio off the living room. At a house-warming party, one of his friends caught the heel of her shoe between some patio bricks and fell, breaking her arm. It took an abnormally long time to heal because she suffered from an unusual bone disease. Hank has heard the following assertions about liability and asks you about them. Which of the following statements is true?

  1. A) The standard of care owed to this visitor is governed by a federal statute and is therefore the same for all provinces.
  2. B) Under the governing statute, he owed a duty of care because he now owned the property; he would not have had any duty of care if he had still been renting it.
  3. C) He owed no duty of care to persons who came to his place; people must take responsibility to look after themselves.
  4. D) The standard of care set by statute is that the occupier has a duty to take reasonable care to see that any guest on the property is reasonably safe.
  5. E) If found liable, he would be responsible only for the damages incurred by a normal person who had suffered from such a fall and not for the greater damages actually suffered by this guest.

Answer:  D

Diff: 2      Type: MC      Page Ref: 155

Topic:  Ch. 5 Occupiers Liability

Skill:  Applied

Objective:  Chapter 5: 6. Examine legislation that affects when liability may be imposed.

Blooms Taxonomy:  Knowledge

27) Ms. J was severely injured as the result of a fall sustained when a portion of a fence surrounding a private cemetery gave way as she was attempting to climb over to visit a grave site. Which of the following is true with regard to an occupiers liability?

  1. A) The standard of care is set by a federal statute and is therefore the same for all the provinces.
  2. B) The standard of care required of the occupier is set by provincial statute.
  3. C) An occupier owes no duty of care to a trespasser.
  4. D) There is no duty of care owed to persons who come onto anothers property whether invited or not; people must take responsibility to look after themselves.
  5. E) The duty imposed by the statute is on the landowner not the tenant.

Answer:  B

Diff: 2      Type: MC      Page Ref: 154

Topic:  Ch. 5 Legislation Impacting Duty of Care

Skill:  Applied

Objective:  Chapter 5: 6. Examine legislation that affects when liability may be imposed.

Blooms Taxonomy:  Knowledge

 

 

28) Last month, Rueben removed a tall tree in his backyard. He left the large hole because he intended to plant a new tree when the rains began. Sunday, he invited his neighbour, Joe, to come over to watch the Olympics. When Joe came, he cut through the backyard and fell into the hole and broke his arm. Which of the following is true with regard to the liability of an occupier of land?

  1. A) The standard of care is set by a federal statute and is therefore the same for all the provinces.
  2. B) An occupier owes a duty only to licencees.
  3. C) There is no duty of care owed to persons who come onto anothers property whether invited or not; persons must take responsibility to look after themselves.
  4. D) The standard of care imposed on the occupier is set by provincial statute.
  5. E) A tenant cannot be liable; only the owner can be sued.

Answer:  D

Diff: 2      Type: MC      Page Ref: 154

Topic:  Ch. 5 Special Situations

Skill:  Applied

Objective:  Chapter 5: 6. Examine legislation that affects when liability may be imposed.

Blooms Taxonomy:  Knowledge

29) When Joan visited her friend Clive, who was renting a small farm in Langley, she was injured by some dangerous cleaning solvent that Clive stores in very large quantities for Soapo Ltd. The solvent had leaked from one of several massive 1000-litre drums. When Joan had walked toward the side door of the farmhouse, she stepped through a puddle of what turned out to be solvent. The solvent not only ruined her shoes, but also burned her skin when some splashed onto her legs. The solvent also drained down into the fish pond on the adjacent property owned by the Nelsons. Read each of the following separately and indicate which is true.

  1. A) If the Nelsons sue for any loss, they would not succeed against Clive because he is just the tenant of the farm, not the owner.
  2. B) If the Nelsons sued on the rule in Rylands v. Fletcher, the defendant could succeed by showing that there was no intention to harm anyone and reasonable care had been taken to contain the solvent.
  3. C) If Joan sued Clive, she would not sue on the rule of strict liability but under the Occupiers Liability Act.
  4. D) If the Nelsons sued on the rule in Rylands v. Fletcher, they would be barred from also pleading negligence as an alternative cause of action.
  5. E) If Joan sues for any loss, she must sue the owner of the farm.

Answer:  C

Diff: 3      Type: MC      Page Ref: 154

Topic:  Ch. 5 Legislation Impacting Duty of Care

Skill:  Applied

Objective:  Chapter 5: 6. Examine legislation that affects when liability may be imposed.

Blooms Taxonomy:  Knowledge

 

 

30) Ms. Lam bought a lot next to a house owned by Mr. Dodson. She asked Mr. Dodson for permission to use his electricity while building a house on her property. He refused. He feared his house was too old to handle the electricity load needed. Later, a carpenter employed by Ms. Lam accidentally broke a window of Mr. Dodsons while moving lumber. Furthermore, the carpenter removed part of Dodsons fence to make room for needed materials, used Dodson house to support the lumber and drove some nails into Dodsons tree to hold some wires. Dodson complained to Ms. Lam. Irritated by his stand on the electricity and his complaints, Lam began a civil action against him for the tort of defamation, although she had absolutely no grounds for alleging defamation. Which of the following is not supported by the facts given above?

  1. A) Dodson has an action against the carpenter for trespass.
  2. B) Dodson has an action against Lam on the principle of vicarious liability.
  3. C) Dodson has an action against Lam on the grounds of strict liability (the rule of Rylands v. Fletcher).
  4. D) Dodson has an action against the carpenter for negligence.
  5. E) Dodson could sue Lam for trespass even if there was no damage.

Answer:  C

Diff: 2      Type: MC      Page Ref: 157

Topic:  Ch. 5 Strict Liability

Skill:  Applied

Objective:  Chapter 5: 7. Distinguish among strict liability, vicarious liability, and product liability.

Blooms Taxonomy:  Knowledge

31) Although there was no carelessness on the part of Mr. Tam, and although he had no intention of harming anyone, he could still be sued by someone harmed by dangerous substances that escaped from his property. This is an example of what tort or what principle of tort law?

  1. A) Vicarious liability
  2. B) Contributory negligence
  3. C) False imprisonment
  4. D) Strict liability
  5. E) Defamation

Answer:  D

Diff: 1      Type: MC      Page Ref: 157

Topic:  Ch. 5 Strict Liability

Skill:  Recall

Objective:  Chapter 5: 7. Distinguish among strict liability, vicarious liability, and product liability.

Blooms Taxonomy:  Knowledge

 

 

32) For his Superbowl Sunday party, Jack bought, among other things, some Francisco mustard. Even before the game began, one of the guests, Fred, made himself a sandwich using that mustard. When Fred saw another guest, Tad, making a sandwich with the mustard, Fred warned him that the sandwich did not taste right and that he (Fred) didnt feel too well. Tad ate everything else on his plate, but left the sandwich. Fred became quite ill and had to go to the hospital. It was determined that the mustard was contaminated when it was made. Jack had bought the mustard just an hour before game time from Big Store, which had bought it from DB Distributors Ltd., which had bought it from the manufacturer New Foods Ltd. On these facts, which of the following is true?

  1. A) Since Fred did not buy the mustard himself, he must suffer his loss; i.e., he cannot sue anyone.
  2. B) Fred could successfully sue Jack for negligence because Jack bought the mustard.
  3. C) Tad could successfully sue Jack for negligence.
  4. D) Fred could successfully sue the distributor for negligence because the distributor delivered the case of mustard to Big Store.
  5. E) Fred could successfully sue the manufacturer New Foods Ltd. for negligence but could not successfully sue Big Store for negligence.

Answer:  E

Diff: 2      Type: MC      Page Ref: 158

Topic:  Ch. 5 Negligence

Skill:  Applied

Objective:  Chapter 5: 7. Distinguish among strict liability, vicarious liability, and product liability.

Blooms Taxonomy:  Knowledge

33) Paul invited several friends over to celebrate Anns birthday. About an hour before the guests arrived, Paul bought some sparkling wine and put it in his refrigerator. When all the guests were assembled, Paul lifted the chilled bottle of wine from its gift box. Before it was completely out of the box, the bottle exploded, sending glass in all directions. The glass cut Pauls hand and also the eye of one of his guests, Joan. No one else was hurt at all. Assuming all these facts could be proved, which of the following is true?

  1. A) Because Joan did not buy the wine, she has no cause of action against anyone.
  2. B) Joan could sue Paul successfully for the tort of negligence for buying and serving sparkling wine.
  3. C) All the guests, including Joan, could successfully sue the manufacturer for negligence; they need only prove that the explosion was the fault of the manufacturing process.
  4. D) If Joan sued the manufacturer for negligence, the court could draw, from the circumstantial evidence of the injury, a conclusion that someone must have been negligent, leaving it to the manufacturer to produce evidence to the contrary.
  5. E) Only Joan has a right to sue in contract.

Answer:  D

Diff: 2      Type: MC      Page Ref: 158

Topic:  Ch. 5 Product Liability

Skill:  Applied

Objective:  Chapter 5: 7. Distinguish among strict liability, vicarious liability, and product liability.

Blooms Taxonomy:  Knowledge

 

34) A land appraiser prepared an appraisal of a property for a real-estate development company. The appraiser had been told that the appraisal would be used by the company to attract potential investors. Because the appraiser forgot to check the recent changes in the zoning by-laws, the appraisal was not accurate; the investor, a party unknown to the appraiser, was misled about the value of the land and, consequently, suffered a financial loss. On these facts, which of the following is true?

  1. A) A land appraiser owes a duty of care to his client, the company, but not to any potential investors.
  2. B) A land appraiser owes a duty of care to his client, and to potential investors only if he knows the name of the investor.
  3. C) The investor might sue the appraiser for negligent misstatement causing economic loss.
  4. D) The investor must suffer his own loss, because an investor takes the risk and so must take care.
  5. E) A person cannot be sued for words that cause loss, only for actions that cause physical injury.

Answer:  C

Diff: 2      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Applied

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

35) To have the schools valued for insurance purposes, a school district hired a firm of surveyors to give them a statement of value. To prepare the report, the surveyors took the relevant measurements, which were then given to a statistical tabulating company that does the calculations based on the measurements. Surveyors always use the services of such tabulating companies. An error was made in the calculations, so the surveyors report was wrong. Therefore, the buildings were under-insured. When one of the school buildings was destroyed by fire, the school district did not get sufficient funds from the insurance company to rebuild the school. On these facts, which of the following is true? (Assume that the school district has the ability to sue and be sued in court.)

  1. A) This action would most likely be commenced in the Small Claims Court.
  2. B) The insurance company can successfully sue the statistical tabulating company for nuisance.
  3. C) The school district can successfully sue the statistical tabulating company for negligent misstatement causing economic loss.
  4. D) The school district could successfully sue the surveyors for nuisance, for subcontracting the calculating work.
  5. E) The statistical tabulating company cannot be sued by the school district.

Answer:  C

Diff: 2      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Applied

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

 

 

36) In which of the following would the plaintiff not succeed in an action for negligence?

  1. A) A real-estate agent accidentally forgot to lock the back door of the house he had just shown. Before the owner returned, someone broke in and stole the TV. The owner sued the agent.
  2. B) A real-estate agent failed to check the zoning and assured the purchasers that they could build a duplex on the property. Relying on that statement, they purchased the property.
  3. C) Shunan was made sick by drinking a contaminated cola bought for her by her friend Fred. She sued the manufacturer.
  4. D) Dr. Alberts used the skill of a reasonable doctor in that field, but the patient did not respond to the treatment and lost hearing in one ear. She sued the doctor.
  5. E) Pradeep was hurt when a driver of a Ginos pizza truck carelessly ran through a yellow traffic light on his way to deliver a pizza. Pradeep sued the driver and Gino, his employer, although Gino wasnt even in the truck.

Answer:  D

Diff: 1      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Recall

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

37) In Hodgkinson v. Simms, an accountant advised a client to invest in a real estate development while also acting for the developers. What did the Supreme Court of Canada find?

  1. A) The presence of a financial risk was the identifying feature of a fiduciary relationship and, in this case, imposed the fiduciary duty.
  2. B) The presence of a financial risk was the identifying feature of a fiduciary relationship but, in this case, did not impose a fiduciary duty.
  3. C) The presence of loyalty, trust, and confidence were identifying features of a fiduciary relationship and, in this case, imposed the fiduciary duty.
  4. D) A fiduciary relationship could not arise in circumstances where an investor acted of his own accord.
  5. E) A fiduciary relationship could not arise in commercial circumstances, such as those found in this case.

Answer:  C

Diff: 2      Type: MC      Page Ref: 163

Topic:  Ch. 5 Fiduciary Duty and Breach of Trust

Skill:  Recall

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

 

 

38) Sumanthra, an accountant, prepared financial statements for ZeeTech Ltd. A cutting edge technology company, ZeeTech was actively seeking private investment in order to finance a new electronics device. Despite the fact that Sumanthra followed Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), the statements she prepared were misleading. Arif and Alena, both potential investors, relied on the statements Sumanthra had prepared. As a result of their reliance, Arif and Alena both invested in ZeeTech and lost a considerable sum of money. Independently, Arif and Alena decided to sue Sumanthra for their financial loss. Which of the following is true?

  1. A) Sumanthra will not escape liability because accountants are automatically liable for losses arising from the use of financial statements they prepare.
  2. B) Sumanthra will not escape liability simply because she followed GAAP and IFRS.
  3. C) Sumanthra has nothing to worry about, because an accountant who follows GAAP and IFRS could not have breached the standard of care.
  4. D) Sumanthra has nothing to worry about, because accountants are immune from liability.
  5. E) Sumanthra has nothing to worry about, because negligence requires proof of more than mere financial loss.

Answer:  B

Diff: 2      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Applied

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

39) Which of the following statements describes the standard expected of experts?

  1. A) Require skills and abilities expected of an average person.
  2. B) Must exercise skill with degree of care expected from a reasonable person in that profession.
  3. C) Inexperience excuses incompetence.
  4. D) Common practice always sets the appropriate standard.
  5. E) The standard of an expert need be perfection.

Answer:  B

Diff: 2      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Recall

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

 

 

40) An investor who wanted to build a duplex asked the city zoning officer whether Lot A of Plan 16, known as 1 Street, was zoned for a single-family house or a duplex. The zoning officer was distracted by a news report on the radio and accidentally gave the investor a printed copy of the zoning for the wrong lot that said duplex, although 1 Street was only zoned for single-family houses. After the investor began building a duplex, the city stopped him for building contrary to the zoning by-laws. He lost $50,000. On these facts (assume all can be proven), which of the following is true?

  1. A) A person can only be sued for actions that cause physical injury.
  2. B) The cause of action most likely to be taken by the investor in this case is deceit.
  3. C) The zoning officer can be sued even though the investor did not have a contract with him (i.e., he didnt pay for the information).
  4. D) The employer of the zoning officer could not be sued since the employer did no wrong.
  5. E) The zoning officer could not be sued successfully since he had no intention of hurting anyone; his error was just an accident.

Answer:  C

Diff: 3      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Applied

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

41) An employee prepared an appraisal of a property for his real-estate development company. The employee had been told that the appraisal would be used by the company to attract a potential investor, Mr. Jones, for the companys client, Mr. Lee. Because the appraiser carelessly forgot to check the recent changes in the zoning by-laws, the appraisal was not accurate. Mr. Jones was misled about the value of the land and suffered a financial loss of $200,000. On these facts, which of the following is true?

  1. A) Mr. Jones could not take any action because he had no contract with the company or the appraiser.
  2. B) A person cannot be sued for words that cause loss, only for actions that cause physical injury.
  3. C) If Jones sues the appraiser, he cannot also sue the employer company.
  4. D) The cause of action most likely to be taken by the investor is defamation.
  5. E) To win in an action against the appraiser, Jones must prove that the appraiser owed him a duty of care, fell below the standard of care owed, and thereby caused him a foreseeable loss because of his reliance on the information.

Answer:  E

Diff: 3      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Applied

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

 

 

42) Jack works as a financial-planning consultant for Adco Ltd., a company that provides financial advice to its clients. At a three-martini lunch with Benson, one of Adcos clients, and Carson, a friend of Bensons, Jack mistakenly advised Benson to buy shares of Moose Jaw Mining because he thought that Adco had investigated the prospects of the company. In fact, Adco had investigated Goose Jaw Mining and was recommending it to its clients. As it turned out, Benson ignored Jacks advice but Carson bought a lot of Moose Jaw shares and lost all of his money when the mining operation went broke. Which one of the following statements accurately describes Carsons legal situation?

  1. A) Because there was no contractual connection between Carson and anyone else, he has no legal right to compensation.
  2. B) Carson will have to sue Benson and then Benson can turn around and sue Jack under the principles of vicarious liability.
  3. C) Jack cannot be held responsible for Carsons loss because someone who is incapacitated at all by alcohol cannot be held liable in tort for actions while incapacitated.
  4. D) Jack cannot be held liable for Carsons loss, but Adco can be because it employed Jack.
  5. E) Jack can only be held liable if Carson can establish that Jack owed him a duty to be careful.

Answer:  E

Diff: 3      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Applied

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

43) To win his action in negligence against a professional person, the plaintiff must prove, among other things, that the defendants conduct was below an acceptable standard of care. Which of the following is the legal standard of care demanded of a professional person?

  1. A) That he act to the very best of his ability
  2. B) That he act as may reasonably be expected of the normally skilled professional of that type
  3. C) That he act as a reasonably prudent person
  4. D) That he act sincerely and with goodwill
  5. E) That he act sincerely and as may reasonably be expected of a skilled professional

Answer:  B

Diff: 1      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Recall

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

 

 

44) Which of the following statements does not describe the standard expected of experts?

  1. A) Require skills and abilities expected of a professional in that field.
  2. B) Must exercise skill with degree of care expected from a reasonable person in that profession.
  3. C) Inexperience does not excuse incompetence.
  4. D) Common practice always sets the appropriate standard.
  5. E) The standard of an expert need not be perfection.

Answer:  D

Diff: 1      Type: MC      Page Ref: 163

Topic:  Ch. 5 Liability of Professionals and Other Experts

Skill:  Recall

Objective:  Chapter 5: 8. Describe the circumstances where professional liability may arise.

Blooms Taxonomy:  Knowledge

 

45) In most Canadian jurisdictions, ________ can be obtained on an individual basis with an insurance corporation, but it is more often acquired by businesses as part of an employee benefits package.

  1. A) property insurance
  2. B) business interruption insurance
  3. C) liability insurance
  4. D) disability insurance
  5. E) professional liability insurance

Answer:  D

Diff: 1      Type: MC      Page Ref: 172

Topic:  Ch. 5 Insurance

Skill:  Recall

Objective:  Chapter 5: 9. Describe the four types of insurance businesses commonly need.

Blooms Taxonomy:  Knowledge

46) Often, a business suffering a loss from a fire will have insurance to cover the property damage, but there will be nothing to cover the revenue losses the business suffers during the period it is closed down for repairs.  What form of insurance will cover the latter issue?

  1. A) liability insurance
  2. B) disability insurance
  3. C) business interruption insurance
  4. D) property insurance
  5. E) professional liability insurance

Answer:  C

Diff: 1      Type: MC      Page Ref: 146

Topic:  Ch. 5 Insurance

Skill:  Recall

Objective:  Chapter 5: 9. Describe the four types of insurance businesses commonly need.

Blooms Taxonomy:  Knowledge

 

 

47) ________ provides only a benefit upon death, and the premiums are lower than whole life insurance, which provides coverage in the event of death as well as investment potential and retirement income.

  1. A) Liability insurance
  2. B) Health insurance
  3. C) Term insurance
  4. D) Death insurance
  5. E) Property insurance

Answer:  C

Diff: 1      Type: MC      Page Ref: 172

Topic:  Ch. 5 Insurance

Skill:  Recall

Objective:  Chapter 5: 9. Describe the four types of insurance businesses commonly need.

Blooms Taxonomy:  Knowledge

 

48) ________ is the type of insurance most closely associated with torts.

  1. A) Liability insurance
  2. B) Business interruption insurance
  3. C) Disability insurance
  4. D) Property insurance
  5. E) Umbrella insurance

Answer:  A

Diff: 1      Type: MC      Page Ref: 172

Topic:  Ch. 5 Insurance

Skill:  Recall

Objective:  Chapter 5: 9. Describe the four types of insurance businesses commonly need.

Blooms Taxonomy:  Knowledge

49) A recent innovation in the insurance industry is ________ where several types of liability are bundled together, allowing the insured higher limits of coverage for a more economical premium.

  1. A) liability insurance
  2. B) business interruption insurance
  3. C) term insurance
  4. D) umbrella liability
  5. E) bundled liability insurance

Answer:  D

Diff: 2      Type: MC      Page Ref: 172

Topic:  Ch. 5 Insurance

Skill:  Recall

Objective:  Chapter 5: 9. Describe the four types of insurance businesses commonly need.

Blooms Taxonomy:  Knowledge

 

 

50) In which one of the following would Joe be able to collect the entire amount of insurance claimed?

  1. A) Joe insured his law partners life for $500,000 and the amount he actually lost when the partner died was only $100,000. Joe claims $500,000.
  2. B) Joes house suffers $20,000 damage, and he only had it insured for $100,000, when the actual value was over $250,000. Joe claims $20,000.
  3. C) Joe

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