Business Associations Overview
42 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the initial requirement to establish a tort of negligence?

  • Damages
  • Duty of care (correct)
  • Breach of duty
  • Causation

What is the limitation period for filing a tort claim?

  • 5 years
  • 1 year
  • 3 years
  • 2 years (correct)

Under Workers Compensation legislation, what is the primary principle?

  • It only applies to serious injuries
  • It provides automatic compensation without fault (correct)
  • It allows employees to sue for damages
  • It requires workers to prove negligence

Which of the following is NOT a component of the tort of negligence?

<p>Insurance obligation (A)</p> Signup and view all the answers

Who is typically liable under professional liability?

<p>Qualified professionals like doctors and lawyers (A)</p> Signup and view all the answers

In the context of negligence, what does 'causation' refer to?

<p>The relationship between the breach and the damages (B)</p> Signup and view all the answers

What should a director do to avoid a conflict of interest?

<p>Leave the room during discussions (C)</p> Signup and view all the answers

Which type of business association exposes an individual to unlimited personal liability?

<p>Sole proprietorship (B)</p> Signup and view all the answers

What is the common legal term used to describe a civil wrong?

<p>Tort (D)</p> Signup and view all the answers

Which of the following statements is true regarding tort law and criminal law?

<p>Torts are civil wrongs and crimes are wrongs against the public. (B)</p> Signup and view all the answers

What distinguishes a civil wrong from a criminal wrong?

<p>The entity harmed is l'the government. (A)</p> Signup and view all the answers

Which of the following is NOT a remedy for default on a mortgage?

<p>Right to arbitration (C)</p> Signup and view all the answers

What is the term for the right of a borrower to reclaim their property by paying off their mortgage?

<p>Equity of redemption (D)</p> Signup and view all the answers

What does the tort system primarily aim to achieve?

<p>Compensate victims for their injuries (A)</p> Signup and view all the answers

What are the four essential elements that must be present for a case of negligence to be established?

<p>Duty, breach, damages, and causation (C)</p> Signup and view all the answers

In the context of vicarious liability, when can an employer be held responsible for an employee's actions?

<p>If the actions occur in the course of employment (A)</p> Signup and view all the answers

What is a key characteristic of negligence in legal terms?

<p>It is based on a concept of carelessness (B)</p> Signup and view all the answers

Which of the following is NOT a type of liability that can lead to compensation for damages?

<p>Practical liability (D)</p> Signup and view all the answers

Which statement accurately describes the concept of 'fault' in liability cases?

<p>No compensation is provided unless fault is established (B)</p> Signup and view all the answers

What does the term 'adverse possession' relate to?

<p>A legal means of acquiring property rights (B)</p> Signup and view all the answers

Which of the following accurately describes workers' compensation?

<p>It provides benefits regardless of fault (C)</p> Signup and view all the answers

Under which scenario could an automobile owner be held vicariously liable?

<p>If a friend borrows the car with permission (C)</p> Signup and view all the answers

What must be established to prove negligence?

<p>Duty of care, breach of duty, causation, and damages (D)</p> Signup and view all the answers

How does the 'Take the victim as you find them' rule affect liability?

<p>Defendant is liable for 100% of the victim's losses (C)</p> Signup and view all the answers

What does 'volenti non fit injuria' imply in tort law?

<p>Assuming a risk voluntarily may preclude recovery (A)</p> Signup and view all the answers

Under the Contributory Negligence Act, what may happen to damages if a plaintiff is found partially responsible?

<p>Damages may be reduced based on level of responsibility (C)</p> Signup and view all the answers

What is necessary for the breach of duty in negligence claims?

<p>A reasonable standard of care is breached (B)</p> Signup and view all the answers

What defines special damages in tort law?

<p>Exact calculable losses such as cost of care (A)</p> Signup and view all the answers

Which statement is true about the consequences of negligence trials?

<p>A trial represents a one-time opportunity for resolution (A)</p> Signup and view all the answers

How does occupiers' liability differ for lawful entrants versus trespassers?

<p>Occupiers owe a duty of care only to lawful entrants (D)</p> Signup and view all the answers

What is one aspect of the 'Crumbling Skull' rule in tort law?

<p>Defendant is only liable for the aggravation of the condition (C)</p> Signup and view all the answers

What is the main aim of the duty of care in negligence law?

<p>To protect individuals impacted by one's actions (D)</p> Signup and view all the answers

What establishes a duty of care in negligence?

<p>The foreseeability of harm to the plaintiff (D)</p> Signup and view all the answers

Which statement accurately describes the breach of duty?

<p>A reasonable person standard is applied to assess breach (D)</p> Signup and view all the answers

What type of damages includes loss of income and medical expenses?

<p>Pecuniary damages (B)</p> Signup and view all the answers

In Donaghue vs Stevenson, who is considered a 'neighbor' in the context of duty of care?

<p>Those closely and directly affected by one’s actions (C)</p> Signup and view all the answers

Which factor does NOT need to be proven for causation in negligence?

<p>The defendant intended to harm the plaintiff (D)</p> Signup and view all the answers

What is the maximum amount for non-pecuniary damages as created in 1978?

<p>$100,000 (A)</p> Signup and view all the answers

What type of damages are not capable of exact calculation?

<p>General damages (A)</p> Signup and view all the answers

Which statement about the duty to warn is true?

<p>A duty exists when the product is deemed dangerous (D)</p> Signup and view all the answers

What must be demonstrated to establish damages in a negligence case?

<p>The damages were caused by the defendant's actions (D)</p> Signup and view all the answers

What standard is used to evaluate if a defendant acted reasonably?

<p>The reasonable person standard (C)</p> Signup and view all the answers

Flashcards

Duty of Care

The legal obligation to act with reasonable care to avoid harming others. It's a general principle that applies to everyone, whether you're at home or running a business. Think of it as the responsibility to be thoughtful and avoid causing harm.

Limitation period in Tort Law

A legal concept that states you can sue for damages within two years of the act that caused the harm. This limitation period ensures fairness and stops people from bringing claims too long after the injury.

Workers' Compensation

Workers' compensation systems provide benefits to employees injured on the job, regardless of fault. They're designed to protect workers and ensure they receive compensation for their injuries. This means you can't sue your employer for negligence, but you can receive benefits for your injury.

Professional Liability

The responsibility of professionals, such as doctors, lawyers, and accountants, to act with a high degree of skill and care in their respective fields. They're expected to meet the standards of their profession to avoid causing harm to their clients.

Signup and view all the flashcards

Corporation

A type of business association where the business is legally separate from its owner. It has its own identity, can sue or be sued, and shields its owners from personal liability.

Signup and view all the flashcards

Duties of Corporate Directors

The duty of directors of a corporation to manage the company's affairs with reasonable care and skill. They are expected to act in the company's best interests and avoid conflicts of interest.

Signup and view all the flashcards

Conflict of Interest

When a corporate director is in a situation where their personal interests conflict with their duties to the company. For example, if a director is also a supplier to the company.

Signup and view all the flashcards

Duty to Avoid Self-Dealing

Directors of a corporation are expected to act in good faith and avoid self-dealing, where they benefit personally at the expense of the company. They must prioritize the company's best interests.

Signup and view all the flashcards

Thin Skull Rule

A legal principle stating that a defendant is responsible for all damages caused to a plaintiff, regardless of their pre-existing vulnerabilities. Essentially, you take the victim as you find them.

Signup and view all the flashcards

Crumbling Skull Rule

A legal doctrine that limits a defendant's liability to the aggravation of the plaintiff's pre-existing condition. It means the defendant is only liable for the additional damage they caused, not the pre-existing condition itself.

Signup and view all the flashcards

Volenti Non Fit Injuria

A defense in tort law where a plaintiff cannot recover damages for injuries they voluntarily assumed the risk of, such as participating in sports.

Signup and view all the flashcards

Contributory Negligence

A legal principle where the court can reduce a plaintiff's damages based on their own contributory negligence, like failing to wear a seatbelt.

Signup and view all the flashcards

Negligence

The most common tort, which involves four elements: duty of care, breach of duty, causation, and damages.

Signup and view all the flashcards

Breach of Duty

The failure to meet the standard of care expected of a reasonable person in a similar situation.

Signup and view all the flashcards

Causation

The link between the defendant's breach of duty and the plaintiff's damages. The breach must have directly caused the harm.

Signup and view all the flashcards

Damages

Financial compensation awarded to a plaintiff for their injuries and losses.

Signup and view all the flashcards

Occupiers' Liability

A legal doctrine that governs the liability of property owners to visitors.

Signup and view all the flashcards

What is a mortgage?

A legal agreement where a borrower pledges property as security for a loan. The lender holds the title until the loan is repaid.

Signup and view all the flashcards

Equity of redemption

The right of a borrower to regain full ownership of their property by paying off the mortgage in full.

Signup and view all the flashcards

Foreclosure

The process of a lender taking ownership of mortgaged property when the borrower defaults on their loan.

Signup and view all the flashcards

What is a tort?

A civil wrong that causes harm to another person or their property.

Signup and view all the flashcards

Criminal wrong

A wrongful act committed against the public or state.

Signup and view all the flashcards

Donoghue v. Stevenson

A famous case that established the "neighbor" principle - You owe a duty of care to those who are directly affected by your actions.

Signup and view all the flashcards

Special Damages

Specific losses that can be calculated precisely, including past and future damages.

Signup and view all the flashcards

General Damages

Losses that are not easily calculated and involve intangible elements.

Signup and view all the flashcards

Non-Pecuniary Damages Cap

A legal limit on compensations for pain and suffering, set in 1978 at $100,000.

Signup and view all the flashcards

Pecuniary Damages

Damages for future losses such as lost income and future medical expenses.

Signup and view all the flashcards

Duty of Care - Professionals

A rule applied to determine the standard of care for professionals. They must act with the skill and care expected of a reasonable person in their profession.

Signup and view all the flashcards

Duty to Warn

A legal duty to warn others of potential dangers associated with a product or activity.

Signup and view all the flashcards

Vicarious Liability: Are you responsible?

When someone is held responsible for the actions of another person. This happens in cases like car accidents where the owner is responsible if they gave permission to use the car even though the driver caused the accident.

Signup and view all the flashcards

Negligence: The Concept of Carelessness

The idea that anyone causing injury to another should compensate the injured party. This involves proving carelessness or negligence by the person who caused the harm.

Signup and view all the flashcards

Tort Law: Compensating for Wrongs

A legal system for handling civil wrongs (not criminal offenses) where the goal is to compensate the injured party for their losses, rather than punishing the wrongdoer.

Signup and view all the flashcards

Duty of Care: The Obligation to Be Careful

A legal obligation to act with care and avoid harming others. Think of it as a simple responsibility to take care not to cause harm while going about your day.

Signup and view all the flashcards

Penal System: Punishing Wrongdoers

A system that aims to reduce crime by punishing wrongdoers through fines, probation, or jail time. It focuses on imposing consequences for illegal actions.

Signup and view all the flashcards

Compensation System: Recovering from Crime

A system that aims to compensate victims of crime for their losses, This is not about punishment, but about ensuring fair recovery from harm caused by a crime.

Signup and view all the flashcards

Liability: Taking Responsibility for Losses

A legal concept where someone is held responsible for losses they caused, even if they didn't intend to cause harm. This is about proving the person caused the damage, regardless of their intent.

Signup and view all the flashcards

Workers' Compensation: Benefits for Injured Workers

A system that provides benefits to employees injured on the job, regardless of whether they were at fault. This ensures workers receive compensation for injuries sustained while working, even if they were partly responsible.

Signup and view all the flashcards

Negligence: The 4 Essentials

The four essential elements that must be proven in a negligence case. If any one of these is missing, negligence can't be established.

Signup and view all the flashcards

Vicarious Liability: Whose Fault Is It?

When a court determines that someone is legally responsible for the actions of another person, even if they weren't directly involved. This often applies in employment and automobile cases - think of an employer responsible for the actions of an employee or a car owner responsible for the actions of someone driving their car with permission.

Signup and view all the flashcards

Study Notes

Business Associations

  • Sole Proprietorship: The business is indistinguishable from the individual. Unlimited personal exposure (all personal assets are at risk). High risk if business fails. Simple to start. Sales over $30,000 require an HST number.

  • Partnership: Involves two or more people with the intention of making profit. Being co-owners does not automatically create a partnership. Agreement is based on relationship, not necessarily written. Partnership Act (provincial) outlines legal aspects.

  • S27: Unless agreed upon, profits are shared equally.

  • S27A: Each partner has the right to manage business operations (if multiple partners, one person may be designated to manage); they don't receive salaries.

  • S27E: All partners have the right to manage the business (one person may handle majority decisions).

  • S27F: No salaries or bonuses are paid to partners; however, profits are split amongst all partners equally or by agreement.

  • S27G: Partners need all partners' agreement before adding a new one.

  • S271: Partnership records must stay in the business location, and all partners can review them.

  • S28: Deals with partner expulsion procedures. A partner can give 30 days' notice. Partnership automatically ends upon partner's death or bankruptcy.

Corporations

  • Legal fiction, can own property and enter contracts
  • Separate legal entity from owners (shareholders)
  • Owners (shareholders) only liable up to investment amount
  • Management managed by directors elected by shareholders
  • Directors required annual meetings to elect the board of directors to discuss management strategies (likely 2-4 meetings per year).
  • Shareholders receive dividends (money from profits).

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Business Law Notes PDF

Description

This quiz covers the key concepts of business associations, including sole proprietorships and partnerships. Learn about the legal definitions, risk factors, and management rights involved in these business structures. Perfect for students or professionals looking to understand the basics of business law.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser