CAIB 3 Chapter 1 Instructor Slides PDF

 Your “Extras” - Denise The Virtual Classroom Hearing the facilitator - test Raise your hand - test Materials - test Polls and Quizzes Ask questions! (out loud or in the chat window) Breaks The Student Portal How to sign in Tutorials Help Links...

 Your “Extras” - Denise The Virtual Classroom Hearing the facilitator - test Raise your hand - test Materials - test Polls and Quizzes Ask questions! (out loud or in the chat window) Breaks The Student Portal How to sign in Tutorials Help Links Quizzes vs. Midterm and Practice Final Insurance Graphic Organizers (following slide)  The Forgetting Curve Hermann Ebbinghaus (1850-1909), a German psychologist founded the experimental psychology of memory and from this the forgetting curve (the loss of learned information) came to light. What do you think The Forgetting Curve is going to be about? Source material: https://www.csustan.edu/sites/default/files/groups/Writing%20Program/forgettin g_curve.pdf The Forgetting Curve The Forgetting Curve  What can I do? We will have activities throughout the course to give you the opportunity to review, please participate! You are responsible for your own learning: at home you must study the textbook, bring questions to class, and continue to review throughout the week! For those of you who are scheduling your exams, keep in mind the Forgetting Curve - the more time between when you finish the prep course and when you take the exam gives you more opportunity to forget! Unless you continue to study and review, of course!  Course Expectations Students have two minutes to write out their expectations for this course in the chat window.  The Past Mistakes and Successes Students take two minutes to write down what sort of studying they have done in the past and what has not worked in the chat window.  Chapter 1 Criminal Liability - A Legal Perspective Section 1: The Law - An Introduction  Learning Topics Criminal Law and Civil Law. Tort Law and Contract Law. Common Law and Statute Law. Awards for Tort Damages. Purposes of awarding damages. Contracts and breaching of a contract.  The Law - An Introduction People are given certain legal rights which, are enforced in Canada. Legal rights of Canadians include: ○ Equality and language rights. ○ Right of personal Privacy. ○ Right to enjoy one’s property unmolested. ○ Right to be free from physical injury. An invasion of the above can be criminal or civil under the courts. ○ Example: Murder, Manslaughter, Price fixing. ○ An act (Tort) may mean fines or imprisonment for the offender (Tortfeasor). The Law - An Introduction  The Law - An Introduction Criminal Law: Definition: A criminal wrong is considered harmful to the state. The State has a duty to prosecute and punish those who commit crimes. The law uses punitive sanctions as a way to enforce its many rules such as: ○ Guilty persons may be given a fine/penalty and/or imprisonment. ○ Focus is to punish the offender. ○ Courts may order compensation to victim, but this is not their primary focus.  The Law - An Introduction Civil Law (Private Law) This law is concerned with the following: ○ Civil or private rights or remedies dealing with crimes against a society. ○ Main focus is to compensate victims. Deals with wrongs in Tort Law or Contract Law.  The Law - An Introduction Civil Law 1) Tort Law: Definition - Tort: “A private or civil wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages” - Black’s Law Dictionary. Primary role of Tort Law is to enable victims to obtain compensation for loss from those who caused it. Not every tort allows compensation from the wrongdoer.  The Law - An Introduction Civil Law 1) Tort Law: Intentional Torts: ○ Intentional wrongs such as: Assault, Conversion of goods and deceit. Unintentional Torts: ○ Result from careless or negligent conduct. ○ Wronged party is entitled to damages or compensation. ○ Examples: Defamation, false arrest, nuisance and trespass.  The Law - An Introduction How Laws are Established: 1) Common Law and 2) Statute Law 1) Common Law In every province other than Quebec. ○ History of the law: Judges have authority discriminate between customs and enforce what they thought is best. Judges give written reasons for decisions and are made public expositions (Case law). ○ Decisions of the courts are made by the Rule of Precedent.  The Law - An Introduction How Laws are Established 2) Statute Law: ○ This is written law. ○ It is created by Federal and Provincial legislation and supersedes or amend common law. Example: Distracted driving laws or drinking and driving laws. ○ Courts are bound to apply statute law.  The Law - An Introduction Example: Common Law: (Rule of Precedent) Prior to 1981, dog owners in Canada weren’t liable for injury caused by their dogs unless they had prior knowledge that the dog was vicious. 1981’s Ontario ruling: legal precedent changed when court ruled that “there is no free first bite” and a dog’s owner is legally liable from the “first bite.” Example: Statute Law: (Written Law) While age of majority in common law is 21 years, most provinces reduced statutes to 18 years old. Statute laws that emerge address the need for changes in outdated laws that don’t represent values of the society any longer.  The Law - An Introduction The Matter of Damages 1) Damages in Tort - Victims of a tort can receive financial compensation. Courts may award following types of damages under a tort: ○ A) Compensatory Damages. ○ B) Exemplary Damages. ○ C) Nominal Damages. Property Damage – need to determine amount of loss by calculating: ○ Difference in the value of the tangible property before and after loss. ○ Actual loss incurred as a result of the loss of property. ○ ○  The Law - An Introduction When person is held liable for damages: ○ The amount is fixed by the jury. ○ Jury will Rule on matters of fact The Matter of Damages 2) Remedies for Breach of Contract A contract is a private matter between the parties and only parties privy to the contract can collect from a breach of contract. If there is a breach in contract, Courts could rule in the following ways: The Law - An Introduction  Section 2 Commercial or Business Liability Exposure  Learning Objections Negligence and Doctrine of Strict Liability. Occupiers and Common Duty owed to others. Liability of Occupiers, Tenants, Landlords. Product Liability. Donaghue v. Stevenson (1932). The duties of the manufacturer and seller. Completed operations and Contingent Liability Exposures.  Commercial or Business Liability Exposure Liability in Common Law: The tort of negligence is the most significant wrong a business owner may be faced with. Doctrine of Negligence states all persons must exercise due care towards others. Definition – Negligence: “What a reasonable and prudent person would or would not do.” Plaintiff must prove negligence on the part of the defendant. “ABC” rule establishes an action of negligence.  Commercial or Business Liability Exposure ABC Rule 1) The defendant owed plaintiff a duty of care. 2) The duty of care was breached due to the defendants negligence. 3) Plaintiff damages were from the defendants breach and negligence.  Commercial or Business Liability Exposure Liability in Statute: Federal and Provincial statutes may be enacted to ensure business owners comply with laws. Ex: Bylaws. People can be held strictly liable for claims. Definition – Strict Liability: “Liability that doesn’t depend on actual negligence or intent to harm. The person is automatically negligent unless they prove otherwise.” The Rationale: Rationale of Strict Liability is to place greater onus on negligent party. Strict Liability can be a matter of 1) Common Law or 2) Statute Law.  Commercial or Business Liability Exposure 1) Common Law: Under common law if occupiers or persons doing dangerous work they will be held strictly liable for any damages caused. Example: Blasting work, underwater welding. 2) Statute Law: Under statute law may come into play if dangerous item or work caused bodily injury. Person who breaches strict liability may face imprisonment or fines.  Commercial or Business Liability Exposure Types of Activities Imposing Strict Liability: Setting off explosives. Lighting of fires. Operation of Aircraft. Keeping a dangerous thing on premises. If you cause injury or damage due to the above you are guilty until you prove innocent. Discussion Question: Is it fair legally to hold someone automatically guilty under strict liability?  Commercial or Business Liability Exposure Broker and the Law: Brokers with a basic knowledge of the law will be able to identify many of clients’ liability exposures/recommend proper protection. Brokers should not provide legal advice to anyone. Premises & Operations Liability Exposure: Occupiers of property may be held financially responsible for bodily injury or property damage to third parties. ○ When losses originate out of occupancy of premises and operations conducted. Commercial or Business Liability Exposure  Commercial or Business Liability Exposure 1) Duty Owed to Those Who Come onto the Premises: Law makes occupiers of land or buildings responsible for damages arising out of both Condition of Premises and Operations conducted on premises. A) The Premises Exposure (Structure) Occupier is responsible for condition of the premises. Examples: a) loose railings, b) wet or slippery carpets or 2) disrepair of the structure.  Commercial or Business Liability Exposure B) The Operations Exposure Operations on or away from premises may expose occupier to a claim of negligence. Example: Employee drops glass on someone's foot. Injured party may sue for damages.  Commercial or Business Liability Exposure 1) Duty Owed to Those Who Come onto the Premises: Common Duty Owed Common duty owed to the condition of the premises is: ○ To take care of premises and reasonably see that visitors are safe while on the premises. ○ If you advised of risk and visitor willingly accepted risk and is injured you may not be held negligence for the issue. ○ Example: You advised visitors of loose stairs, someone elected to use them and fell and their leg broke.  Commercial or Business Liability Exposure Liability of Occupiers Limited in Certain Instances The following instances limit or remove the occupiers liability for injury altogether. A) Liability for Independent Contractor: ○ Anyone controlling land, buildings, movable structures is deemed an occupier. Independent contractors working on another’s premises at law is an occupier. ○ Principle will not be held liability for actions of the independent contractors. Reasonable care taken selecting contractor. Reasonable that work should have been undertaken.  Commercial or Business Liability Exposure A) Liability for Independent Contractor ○ Principle will share liability for actions of the independent contractors if: Work being done is inherently dangerous (Ex: using explosives). Injury or damage is from contractors use of defective fixtures, machinery or equipment supplied by principle. The principle controls the manner in which work is being done.  Commercial or Business Liability Exposure B) Liability for injuries resulting from condition of rented building Single Occupancy Buildings (Ex: flower store) ○ Generally landlords are not liable to tenants or customers for injuries caused by unsafe premises. ○ Except if they fail to advise tenants of issues or fails to repair issues. Multiple Occupancy Building (Ex: office tower) ○ Landlord is responsible to the tenant and people who enter on to premises and use common areas. ○ Example: hallways, elevators, parking lots.  Commercial or Business Liability Exposure 2) Duty Owed to Those Outside the Premises: Occupiers of property may owe a duty in common or statute law to persons who may suffer damages arising out of occupancy or operations conducted on premises. Example: Sign that extends over city property must get erected with care (safety of others) and be maintained by standards. Example: Bricks (or other) used to construct building must not fall into disrepair so that they are dangerous to passers by. Occupier of property may also be exposed to liability for a) nuisance and 2) trespass:  Commercial or Business Liability Exposure a) Nuisance: Definition – Nuisance: “A person, thing, or circumstance causing inconvenience or annoyance.” Courts state the following is needed for a claim of private nuisance: ○ There is physical injury or substantial interference with their use or enjoyment of land. ○ The injury or interference was unreasonable. ○ Examples: Smoke, noise or vibrations, pollution of land and waterways.  Commercial or Business Liability Exposure Occupier of property may also be exposed to liability for a) nuisance and 2) trespass: a) Trespass: Definition – Trespass: “An unlawful interference with one’s person, property or rights.” ○ Examples: Erecting a building so part of it comes onto your property.  Commercial or Business Liability Exposure Products Liability Exposure Consumer has the right to expect the goods they purchase are safe for use. A Defective Product is one where: ○ It contained something it should not of. ○ Something was omitted in the manufacture process. Products liability claim can only arise when: ○ Injury or damage occurred away from the premises. ○ The seller clearly relinquished possess of the defective product.  Commercial or Business Liability Exposure Action May be Brought in Contract or Tort Action in Contract: Sales of Good Act makes manufacturer responsible for the goods they sell. ○ Goods need to fit for their use. ○ Seller needs to make sure they have skill or judgment to sell the product. Only those privy to the contract can sue. Definition – Implied Warranty: “written or oral – that a product is fit for the purpose intended and is merchantable.”  Commercial or Business Liability Exposure Action in Tort: Snail in the Bottle claim allowed the owner or user of the product to sue manufacture for injuries. Prior to the above case only the purchaser could sue. ○ Goods need to fit for their use. ○ Seller needs to make sure they have skill or judgment to sell the product. Manufacturer labile only for defects caused by their negligence. If manufacturer took reasonable steps in the manufacturing of product they may escape liability. Manufacturer responsible under strict liability for the following: ○ For damages caused by defective products, regardless of negligence.  Commercial or Business Liability Exposure Donoghue vs. Stevenson (1932) 1928: May Donoghue went to a cafe with her friend. Friend bought “Scotsman’s ice cream float - ice cream with a bottle of ginger beer.” Shared it, finished it, found a rotten snail at bottom of bottle that couldn’t be seen because of color of glass. Donoghue became ill, then hospitalized: Wanted action for damages. Couldn’t sue cafe because her she did not purchase the ginger beer. Only those entitled to bring action of contract are those privy to the contract Couldn’t sue shopkeeper: he wasn’t negligent. Law of the day stated Donoghue couldn’t sue, though for the troubles she was awarded $9,000. Commercial or Business Liability  Commercial or Business Liability Exposure Duties of Manufacturers Manufacturers have the following duties: ○ Liable for all product defects. ○ Duty to ensure: Safe Design. Safe manufacture, construction, assembly and packaging. ○ Provide warnings of dangers which occur using the product. ○ Provide instruction.  Commercial or Business Liability Exposure Duties of Sellers Under the law sellers are: ○ Deemed experts when it comes to ingredients and properties of the articles they sell. ○ Expected to tell the truth about the articles.  Commercial or Business Liability Exposure Completed Operations Liability Exposures: Completed operations exposure arises out of the work performed by a business. If defective work causes injury or damage injured party can sue.  Commercial or Business Liability Exposure When an Operation is Complete Completed operation claim can arise only when it is shown injury or damage ○ Occurred away from the premises of the persons doing the work. ○ That such work has been completed or abandoned. Basis of Claims: Defective work can result in the following losses: ○ Bodily injury or property damage to persons using the completed work. ○ Loss of property use.  Commercial or Business Liability Exposure Most claims for injury or damage arising from completed operations allege: ○ Improper performance of a completed task. ○ Use of the defective materials, parts or equipment. ○ Work not warranted. ○ Arising out of the work or out of the materials or equipment furnished. ○ Failure of the contractor to withdraw, inspect, repair or replace any defective work.  Commercial or Business Liability Exposure Personal Injury Liability Exposure Businesses who deal with the public are exposed to personal injury claims. Damages to injured party consider the following: ○ Inconvenience, embarrassment, suffering, harm to reputation, economic loss. Business with high exposure to personal injury include: ○ Those that employ store detectives. ○ Landlords. ○ Newspapers and Broadcasters.  Commercial or Business Liability Exposure Liability for Property in the Business Care, Custody or Control Real Property. ○ A business operating in a rented premises has liability for loss to building or fixed equipment. Personal Property. ○ Legal duty owed to customers by a Bailee for hire is a matter of tort law. ○ Definition – Bailee for Hire: “one who has temporary custody of the personal property of another for a purpose other than sale. They are compensated for their services.”  Commercial or Business Liability Exposure Liability in Tort A Bailee for hire is expected is expected to take same care with others property as they would do their own. The above is called “ordinary care.” If Bailee fails to exercise ordinary care then they are responsible for damage to property in case, custody and control.  Commercial or Business Liability Exposure Employer’s Liability Exposure 1) Employer’s Liability For Torts of Employees. (Master – Servant Relationship) Employers are responsible for actions of their employees during course of work. Injured party needs to show injury occurred while employee was working in course of their duties. Employers not liable if employee: ○ Act outside of their scope of work. ○ Delegate their work to another without permission. ○ If they “frolic” on their own. ○ Use employers property without consent.  Commercial or Business Liability Exposure 2) Employer’s Liability for Injuries to Employees Responsibility of the employer to provide WCB or Employers Liability Coverage in case employee is injured during work. Some jobs cannot obtain WCB: farming, consultants or foreign embassies.  Commercial or Business Liability Exposure Contingent Liability Exposure A contingent liability expose can exist when:. Work is done by persons who are not employees. Definition – Contingent Liability: “A contingent liability is a potential liability that may occur depending on the outcome of an uncertain future event.” When employees work in another Province longer than they are allowed to under WCB.  Commercial or Business Liability Exposure Contractual Liability Exposure Definition – Contractual Liability: “the liability of others assumed by the insured under contract.” Examples of above include: ○ Construction contracts. ○ Purchase orders and sales agreement. ○ Other contracts. is done by persons who are not employees. ○  Commercial or Business Liability Exposure Pollution Liability Exposure Definition – Pollution: “the contaminating or defiling of the environment.” The cost of pollution clean-up is a worry for a lot of businesses. Commercial or Business Liability Exposure  Commercial or Business Liability Exposure Incidental Medical Malpractice Exposure Businesses that provide incidental medical services will need to purchase incidental medical malpractice insurance. Examples include doctor offices, pharmacy’s.  Important Terms So Far Students take two minutes to write down one important term that has been discussed so far in the course, in the chat window. Remember the Forgetting Curve!  Key Terms Civil Law Tort Breach of Contract Rule of Precedent Statute Law Damages Compulsory Damages General Damages  Key Terms Special Damages. Exemplary or Punitive Damages. Nominal Damages. Doctrine of Negligence. Negligence. Strict Liability. Occupier. Nuisance. Trespass.  Create a “What” question Students take two minutes to create a “What” question based on the concepts covered so far, in the chat window. No question is too simple! Remember the Forgetting Curve!  Your Assignment Please refer to your IGO assignment in your student portal and use information from the Chapter 1 slides to answer the question. You can submit your IGO activity to your facilitator or ask questions in class. For an explanation of the slide information and an answer to the activity, please check out the “IGO Answers” videos in your student portal. Please ask questions if you need to! Please advise the difference between General and Special damages? (/4)