Contract Law Chapter: Remedies and Risk Management
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 an example of an intentional tort?

  • Negligence resulting in an accident
  • False imprisonment of an individual (correct)
  • Injury caused by a defective product
  • Property damage due to a storm

    • What is the primary purpose of tort law?

  • To provide compensation to the victim (correct)
  • To deter others from committing similar offences
  • To investigate criminal behaviour
  • To punish the wrongdoer through imprisonment

    • Which statement accurately distinguishes tort law from criminal law?

  • Both involve the same legal proceedings.
  • Criminal law requires compensation to the victim.
  • Criminal law is concerned with public harm while tort law is private. (correct)
  • Tort law only applies to civil actions for damages.

    • In tort law, who is the legal party initiating a lawsuit?

    <p>Plaintiff</p> Signup and view all the answers

    What burden of proof is required in a criminal action?

    <p>Beyond a reasonable doubt</p> Signup and view all the answers

    What is the primary purpose of tort law?

    <p>To provide compensation for injuries caused by others</p> Signup and view all the answers

    Which of the following defines 'negligence' in tort law?

    <p>Unreasonable conduct that results in harm</p> Signup and view all the answers

    What constitutes 'deceit' or 'fraud' in tort law?

    <p>An intentional or reckless false representation</p> Signup and view all the answers

    In tort law, what does 'trespass to land' refer to?

    <p>Interference with another's possession of land</p> Signup and view all the answers

    Which of the following is considered a risk management strategy when performing a contract?

    <p>Negotiating liability clauses</p> Signup and view all the answers

    What indicates a situation of 'unjust enrichment' under restitution law?

    <p>One party benefits at another's expense without legal justification</p> Signup and view all the answers

    How can a business deal with the risk of not performing a contract effectively?

    <p>Utilize proper negotiation training for employees</p> Signup and view all the answers

    What is one of the outcomes of a successful tort claim?

    <p>Financial compensation for the injured party</p> Signup and view all the answers

    What constitutes a defective product in the EU?

    <p>A product that fails to provide expected safety based on various circumstances.</p> Signup and view all the answers

    Which party is always responsible for providing a safe environment in tort law concerning occupiers’ liability?

    <p>Any occupier, including tenants.</p> Signup and view all the answers

    What is the duty owed to a contractual entrant?

    <p>A warranty that the premises are safe as reasonable care allows.</p> Signup and view all the answers

    How are licensees treated under occupiers’ liability law?

    <p>They must be warned of any unusual dangers known to the occupier.</p> Signup and view all the answers

    What standard of care is owed to a trespasser?

    <p>A reasonable duty to prevent harm.</p> Signup and view all the answers

    Which visitor classification is typically owed the highest standard of care?

    <p>Contractual entrant.</p> Signup and view all the answers

    In the context of product defects, which factor is NOT relevant in determining the defectiveness of a product?

    <p>The advertising strategies employed for the product.</p> Signup and view all the answers

    Which statement is NOT true regarding the duties of occupiers?

    <p>Occupiers are required to prevent common dangers.</p> Signup and view all the answers

    What type of danger must an occupier warn invitees about?

    <p>Unusual dangers of which the occupier is aware.</p> Signup and view all the answers

    What happens if a child trespasser is present on the property?

    <p>The duty owed is interpreted more generously.</p> Signup and view all the answers

    What is the burden of proof that the plaintiff must meet in a civil action?

    <p>It is more likely than not</p> Signup and view all the answers

    Which of the following best describes primary liability in tort?

    <p>Liability arising from personal wrongdoing</p> Signup and view all the answers

    What must be established for an employer to be vicariously liable for an employee's wrongful act?

    <p>A significant connection to authorized conduct</p> Signup and view all the answers

    Joint tort-feasors are defined as:

    <p>Persons jointly responsible for a plaintiff's loss</p> Signup and view all the answers

    In cases of contributory negligence, what happens to the plaintiff's damages?

    <p>They may receive a reduced amount based on their contribution</p> Signup and view all the answers

    Under what condition can an employer be held vicariously liable for an unauthorized act by an employee?

    <p>If the act is connected with authorized acts</p> Signup and view all the answers

    What is the primary goal of a tort remedy?

    <p>To compensate the victim</p> Signup and view all the answers

    What distinguishes joint tort-feasors from individual tort-feasors?

    <p>Responsibility for a single loss</p> Signup and view all the answers

    What is a key factor in the liability of employers for employee actions?

    <p>The connection between the act and employment</p> Signup and view all the answers

    What is the primary purpose of aggravated damages?

    <p>To compensate for emotional injuries caused by the defendant's conduct</p> Signup and view all the answers

    In the context of punitive damages, what principle has the Supreme Court of Canada emphasized?

    <p>They must be no greater than necessary to punish, deter, and denounce.</p> Signup and view all the answers

    What legal concept allows a plaintiff to pursue claims in both tort and contract?

    <p>Common ground between tort and contract</p> Signup and view all the answers

    In negligence law, what must a plaintiff prove?

    <p>That a reasonable person would have acted differently</p> Signup and view all the answers

    What does the term 'reasonable care' refer to in the context of negligence?

    <p>Care exhibited by a reasonable person in similar circumstances</p> Signup and view all the answers

    What was the outcome of Steve Moore's lawsuit against Todd Bertuzzi?

    <p>The lawsuit was settled for an undisclosed sum.</p> Signup and view all the answers

    What kind of damages are intended to punish the defendant's behavior?

    <p>Punitive damages</p> Signup and view all the answers

    What does negligence specifically refer to in the legal context?

    <p>A careless act that causes harm to another.</p> Signup and view all the answers

    Which of the following best summarizes the stance of American courts on punitive damages?

    <p>They should be equal to the compensatory damages.</p> Signup and view all the answers

    In the landmark case Donoghue v Stevenson, what principle was established?

    <p>Manufacturers owe a duty of care to consumers.</p> Signup and view all the answers

    Study Notes

    Restitutionary Remedies

    • A plaintiff can seek recourse for benefits conferred to a defendant in a contract that cannot be enforced.
    • An example is a contract that is non-compliant with the Statute of Frauds.
    • Restitutionary remedies aim to remedy unjust enrichment.

    Unjust Enrichment

    • A party who has secured a benefit at the expense of another party without justification is experiencing unjust enrichment.
    • Generally, the court orders restoration of the benefit to the plaintiff.

    Managing Risk

    • Businesses face risks when performing contracts.
    • These risks include the possibility of the business not being able to perform at all or performing deficiently.
    • Businesses can manage risk proactively or reactively.

    Proactive Risk Management

    • Strategies include:
      • Negotiating contract clauses.
      • Limiting or excluding liability.
      • Including force majeure clauses
      • Providing employees with negotiation training.
      • Obtaining proper insurance.

    Reactive Risk Management

    • Reactive management occurs after the business is in breach of contract.
    • The business may face liability and should consider mediation, arbitration, or settlement offers.

    Tort Law Introduction

    • Tort Law is a branch of the common law that deals with civil wrongs that result in harm to an individual or their property.

    Defining Tort Law

    • A tort is a harm caused by one person to another that is not related to a breach of contract.
    • The law provides a remedy for the harm.
    • Tort law aims to compensate individuals who suffer harm as a result of others' actions.
    • Tort law determines when shifting the responsibility for a loss to the person causing the loss is appropriate .

    Tort Categories

    • Torts are organized into categories with specific definitions.
    • Examples:
      • Trespass to land: wrongful interference with possession of land.
      • Deceit or fraud: intentional or reckless misrepresentation that causes damage.
      • Negligence: unreasonable conduct that leads to harm.

    Occupiers' Liability

    • An occupier is someone who controls land or buildings on that land.
    • Occupiers can be owners or tenants.
    • Occupier liability commonly arises when an occupier harms another party.

    Common Law Occupiers’ Liability (1)

    • The common law approach to occupiers' liability varies by jurisdiction.
    • Common law classifies visitors into categories:
      • Trespasser
      • Licensee
      • Invitee
      • Contractual entrant
    • Each class is owed a different standard of care.
    • The lowest standard of care is owed to trespassers, and the highest standard is owed to contractual entrants.

    Common Law Occupiers’ Liability (2)

    • Contractual entrant: a person who has paid for the right to enter premises.
      • The duty owed to this class is a warranty that the premises are as safe as reasonable care and skill allow.
    • Invitee: a person who enters premises to benefit the occupier.
      • The occupier must warn the invitee of any unusual danger.
      • There is no obligation to warn about common and usual dangers that reasonable people would be aware of.

    Common Law Occupiers’ Liability (3)

    • Licensee: a person permitted to enter for their own benefit.
      • The occupier is responsible for any unusual danger they are aware of or should have been aware of.
    • Trespasser: a person who is not invited and whose presence is unknown or objected to by the occupier.
      • The occupier is liable for harm caused by intentional acts against the trespasser or recklessness regarding the trespasser's presence.
      • Child trespassers may sometimes be treated as invitees, or the duty owed to them might be interpreted generously.

    Civil Actions

    • The plaintiff in a civil action bears the burden of proof.
    • They must show it's more likely than not that the defendant committed the tort.
    • A successful civil action typically results in the defendant paying damages to the plaintiff.

    Primary and Vicarious Liability

    • Primary liability arises from personal wrongdoing.
    • Vicarious liability arises when an employer is held liable for the tortious actions of their employee committed within the scope of their employment.
    • Employers are typically liable for:
      • Acts authorized by the employer.
      • Unauthorized acts that are closely related to authorized acts.

    Distinguishing Vicarious Liability

    • It can be challenging to distinguish between an improper mode of performing an authorized act and an independent act.
    • An employer can be held vicariously liable for an employee's intentional wrongdoings if a significant connection to authorized conduct is established.
    • Employers are not vicariously liable for crimes committed by their employees.

    Liability and Joint Tort-Feasors (1)

    • A tortfeasor is a person who commits a tort.
    • Joint tortfeasors are two or more persons who are held jointly responsible for a plaintiff's loss or injuries.
    • According to legislation:
      • If multiple parties are negligent and responsible for the loss, the plaintiff can sue any or all of them.
      • Fault will be apportioned based on the level of responsibility.
      • The plaintiff can recover 100% of the judgment from any of the defendants found jointly responsible.

    Contributory Negligence

    • Contributory negligence is a defence that claims that the plaintiff is partially responsible for the harm.
    • If the defendant proves the plaintiff's responsibility for the loss, the plaintiff's damages are reduced proportionally.

    Damages in Tort

    • The primary objective of tort remedies is to compensate the victim through a monetary judgment.
    • Punitive damages are intended to punish, deter, and denounce the defendant's behaviour.

    Aggravated Damages

    • Aggravated damages compensate for intangible injuries like distress and humiliation caused by the defendant's reprehensible conduct.
    • They differ from punitive damages by aiming to compensate the plaintiff for the emotional consequences of the defendant's behaviour.

    Tort Law and Contract

    • The same set of facts can sometimes give rise to liability in both tort and contract.
    • The plaintiff might choose the claim that provides the higher payout.

    Negligence

    • Negligence is a careless act that causes harm to another.
    • It involves failing to demonstrate the care that a reasonable person would have exercised in the same situation.
    • The plaintiff doesn't need to prove that the defendant intended to cause the harm or acted deliberately.
    • Reasonable care is the level of care expected from a reasonable person in similar circumstances.
    • The law of negligence seeks to compensate victims without discouraging legitimate activities or imposing unreasonable standards.

    Landmark Case: Donoghue v Stevenson

    • A customer bought a bottle of ginger beer, which contained a decomposed snail, and gave it to their friend, Donoghue, to consume.
    • Donohue became ill and sued the manufacturer (Stevenson).
    • The case established the "neighbor principle," which holds that manufacturers owe a duty of care to consumers of their products.
    • The case opened the door to modern consumer protection laws.

    Tort Categories: Intentional and Negligence

    • Torts are generally divided into two groups:
      • Intentional torts
      • Torts committed through negligence.
    • Intentional tort: a harmful act that is committed deliberately.
      • Examples:
        • False imprisonment: unlawful detention or restriction of movement.
        • Battery: intentional physical contact that causes harm or offense.

    Relevance of Intent

    • A negligent party is liable for damages even if they did not intentionally cause the harm.

    Tort and Criminal Law

    • The same event can lead to consequences in both tort and criminal law.
    • For example, an impaired driver who hits a pedestrian may be charged criminally and be liable for negligence.

    Purpose of Tort and Criminal Law

    • Criminal law aims to punish and censure behaviour, and the prosecution is handled by the government, often without victim compensation.
    • Tort law seeks to compensate the victim for their losses.

    Civil Commencing Actions

    • In criminal law, legal action is called a prosecution, brought by Crown prosecutors.
      • The wrongdoer is the "accused".
      • The victim is the "complainant."
    • In tort law, an injured person sues in a civil action to enforce their right to compensation.
      • The injured person is the "plaintiff".
      • The wrongdoer is the "defendant."

    Proving Actions in Criminal & Civil Law

    • The Crown must prove guilt "beyond a reasonable doubt" in a criminal case.
      • This requires the guilt to be a logical deduction from the evidence.
      • Conviction may result in imprisonment.
    • In a civil action, the plaintiff must show it's more likely than not that the defendant committed the tort.

    Additional Information

    • The text is an excerpt from the book "Canadian Business and the Law, EIGHTH EDITION".
    • The material focuses on the fundamentals of tort law in Canada.
    • The text includes multiple cases and legal definitions relevant for business students.

    Studying That Suits You

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

    Quiz Team

    Related Documents

    Non-Enforcement of Contracts PDF

    Description

    This quiz discusses restitutionary remedies and unjust enrichment in contract law. It also explores strategies for managing risks associated with contracts, including proactive and reactive approaches. Test your understanding of these essential legal concepts.

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser