ADMS 2610 Lecture Notes - Lecture 5: Fiduciary, Deontological Ethics
7 Jun 2018
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Chapter 6
Special Tort Liabilities of Business Pros
1. The Professional
a. Usually has an accompanying professional body (self-regulating body) who
determines negligence
b. May find themselves liable to third parties
c. Professional liability may arise under contract but usually under the tort of
negligence or a breach of fiduciary duty
2. Standards
a. Purpose: Protection of the public by ensuring professionals are licensed and
qualified
b. Professional associations ensure the above
i. Right to revoke/prevent a member from practicing
ii. Establish standards of competence
iii. Review membership conduct and practice complaints
iv. Often provide negligence insurance to their members
3. Professional-Client Relationship
a. Created: By contract
i. Contractual duty of professional to perform services
ii. Negligent performance is a breach of contract
b. Implied: By providing services
4. Duty
a. Fiduciary Duty
i. Duty to place a client’s interest above the professional’s own interesrs
ii. Distinguishes a professional from others
iii. Avoid conflicts of interest
b. Tort Duty of Care
i. Professionals must perform their duty according to the accepted
industry standards
ii. Held to the standard of a professional
iii. Determined by the self regulating body
5. Standard of Care
a. Professional must perform their duties according to the standard of skill,
knowledge, and judgement of a professional of like training and experience.
b. Industry standards established by expert opinion (ie. peers)
c. “As at” the time of the alleged negligence
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