Business Law in Canada - Chapter 5: Negligence, Professional Liability, and Insurance

These flashcards cover critical concepts in the topics of negligence, professional liability, and insurance, based on Chapter 5 of the Business Law in Canada lecture notes.

What are the four elements of a negligence claim?

1. Duty of care 2. Breach of duty 3. Causation 4. Damage

What is the reasonable foreseeability test?

It determines if a duty of care is owed by assessing whether a prudent person would foresee that their conduct could likely cause injury.

What is the difference between misfeasance and nonfeasance?

Misfeasance is an act that causes harm (wrongdoing), while nonfeasance is a failure to prevent an injury.

What does the 'but for' test evaluate?

It evaluates if the injury would have occurred 'but for' the defendant's conduct, establishing direct causation.

What are the three defences to a negligence claim?

1. Voluntary assumption of risk 2. Contributory negligence 3. Illegality (ex turpi causa)

What is occupier's liability?

It refers to the legal duty of care owed by an occupier of land to individuals who come onto the property.

Define strict liability in the context of negligence.

Strict liability holds a party responsible for damages regardless of fault.

What type of products are manufacturers liable for?

Manufacturers are liable for injuries caused by defective products.

What is professional liability insurance?

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

What does property insurance cover?

It covers losses to buildings and their contents due to fire or other named perils.

What does business interruption insurance provide coverage for?

It covers lost profits and expenses during unforeseen events that cause a business to cease operations.

What is the legal concept of vicarious liability?

It holds an employer responsible for the wrongful acts of an employee, even if the employer did nothing wrong.