Study Notes for Final Exam

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Management (MGS)
Professor Rybak

MGTC31H3 - BUSINESS LAW FINAL EXAM CHAPTER 6: TORT LIABILITIES OF BUSINESS PROFESSIONALS THE PROFESSIONAL Professional person with skills not possessed by most individuals the professional-client relationship Contract where a professional agrees to perform certain specified services for the client in return for a fee in accordance with standards of profession fiduciary duty of care Duty to place a clients interest above the professionals own interest If professional agrees to perform free service, there is a duty to perform according to standards, despite no contract A professional offering free professional advice must ensure hisher role or interest in the transaction is fully explained tort duty of care Professional must maintain standard of proficiency or exercise degree of care in conduct of duties that is according to standards or profession Ie. Surgeon, child and sponge case: child dies as a result of a sponge left in throat surgeon is found guilty of negligence because he did not do everything in his power despite warnings INformed consent A full and understandable explanation of the risks associated with a course of action and the clear understanding by the client or patient Negligent misrepresentation Negligent misstatements made by professional to client; breach of duty of care Test for Negligent Misrepresentation: 1. Was harm foreseeable 2. Was there a relationship between the parties of sufficient proximity 1 3. Would it be just and reasonable to impose duty on party making statement Accountants Duty to accurately prepare financial statements of publicly traded corporations Lawyers Standard of care is that of a skilled and careful member of the profession and the failure to maintain this level of competence in the performance of the lawyers duties to the client may constitute negligence Solicitor-client privilege: duty of lawyer to keep confidential information by a client Engineers Standard of care is that of a competent and careful engineer trained in that particular area of expertise for which they are trained Liability it not limited to client but also to subsequent purchasers of construction project Architects Expertise is limited to the design and supervision of construction of buildings and structures If loss results to the client by the architect not maintaining standard level of skill, may result in tort liability for negligence University Professors Duty of care in the dealing and treatment of students Liable for damages such as injury to reputation or career Semi-professional and other skilled persons Can be responsible for losses others suffer as a result of careless acts or omissions Ie. Insurance agents 2
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