Negligence, Professional Liability, and Insurance

Flashcards covering key concepts from Chapter 5 on Negligence, Professional Liability, and Insurance.

What are the four required elements that must be established in a negligence action?

A duty of care, Breach of duty, Causation, Damage.

What is the Reasonable Foreseeability Test in the context of duty of care?

It establishes a duty if it is apparent to a prudent person that the conduct is likely to cause injury.

What is misfeasance?

An act that causes harm to another (wrongdoing) for which the court will provide a remedy.

What is nonfeasance?

A failure to prevent an injury, for which courts are reluctant to provide a remedy.

What is the 'But For' test used for in negligence claims?

It is used to establish physical causation by proving that but for the defendant's act, the injury would not have occurred.

What does the remoteness test assess in a negligence case?

Whether the specific type of injury suffered was reasonably foreseeable.

What are the three main defenses to a negligence claim?

Voluntary assumption of risk, Contributory negligence, Illegality (ex turpi causa).

What are the implications of the Thin Skull Rule in a negligence claim?

One is liable for the full extent of injuries suffered, regardless of the victim's pre-existing conditions.

What constitutes occupier's liability?

An occupier owes a duty to take reasonable steps to protect visitors on their property.

What is strict liability?

Liability that arises when a dangerous situation is created by an unusual use of property that is inherently dangerous.

What is professional liability insurance?

Insurance that protects professionals against damages resulting from errors and omissions in their work.

What is the principle behind the Contract of Utmost Good Faith?

Both parties must disclose pertinent information and processes claims fairly.

What is the purpose of business interruption insurance?

To cover lost profits and expenses when a business ceases operations due to unforeseen events.

What must be proven for a negligence claim in terms of damages?

The plaintiff must have suffered injury or loss.

What is the difference between a fidelity bond and a surety bond?

A fidelity bond protects against employee wrongdoing, while a surety bond compensates if a job is not completed or completed on time.