Exam 22: Professional Services

A lawyer met with several members of the community at a social function.During the evening,he spent a great deal of time discussing one particular client in great detail.The client's friend,unknown to the lawyer,was not impressed by some of the derogatory comments expressed during the discussion.What will likely be the result when the client's friend explains the evening's events?

The fiduciary must comply with the spirit of the obligations owed by it and not merely the letter.

An advance payment requested by a professional from a client is typically required prior to the professional performing any work on the client's behalf.

In what way are losses resulting from damage to property and pure economic losses similar with respect to professional liabilities arising in tort?

Which of the following is a condition of practice in most professions?

In which of the following circumstances will the lawyer's indemnification fund compensate the victims of one of its practising members?

Which of the following is a distinguishing characteristic of professions?

Which of the following statements represents one of the key criticisms of the Supreme Court of Canada decision in Hercules Management Ltd.v,Ernst & Young?

What is the key to limiting the duty of care owed by an auditor to third parties as defined by the foreseeability principle?

Briefly outline the five requirements for proof of negligent misrepresentation.

A professional service contract should provide for unseen developments during the course of the contract.In so doing,which of the following questions will be addressed?

In the case of Haig v. Bamford, (1976) 72 D.L.R. (3d) 68 S.C.C., the Supreme Court found the defendants (auditors) owed a duty of care to third-party claimants. Why did the court break away from its traditional approach of refusing all third-party claims for professional negligence in this particular instance?

Briefly discuss the concept of professional-client privilege.

Limited liability partnerships were originally introduced to Canadian society through the federal government's amendment of the Canada Business Corporations Act.

Breanne is considered to be one of the top family law professionals in her province.She has been retained by Martha's lawyer to give an opinion with respect to the standard of care of a reasonably competent family law lawyer.What is most likely the purpose for Breanne's involvement in this litigation?

If a professional's contract price is not stated,the principle of quantum meruit applies.

Pym and Pike is a law firm that is considering forming an LLP.Which of the following statements correctly describes the key advantage to Pym and Pike's partners of forming an LLP?

In the case of a negligently prepared audit,a reasonably foreseeable use and reliance by a number of individual third parties establishes that the professional's duty of care exists.By applying the judiciary's imposed policy considerations at the second step of the test,the court is able to shield the professional from liability by limiting the use of the audit to its statutory purpose.

List the ways in which professionals can manage risk arising from their professional responsibilities.

When shareholders use audited statements as the basis for their investment decisions,court-imposed policy has shaped the law to consider this use outside the intended statutory purpose of the audit.In so doing,the courts have allowed the professional to be released from any duty of care to these individuals for any investment losses incurred as a result of relying on the audit.