Question 1

An auditor will never under any circumstances owe a duty of care to a third party.

Accepted Answer

A) True 
 B)False  False

Question 2

Liability for criminal negligence might arise because:

Accepted Answer

A)  The accused failed to exercise reasonable care and this caused death or injury to a member of the community. 
B)  There was a very serious departure from reasonable standards of care. 
C)  The accused was reckless in the face of it being reasonably foreseeable that the injured person would suffer serious harm. 
D)  All of the above. 
A)  The accused failed to exercise reasonable care and this caused death or injury to a member of the community. 
B)  There was a very serious departure from reasonable standards of care. 
C)  The accused was reckless in the face of it being reasonably foreseeable that the injured person would suffer serious harm. 
D)  All of the above. D

Question 3

A driver of a vehicle registered in the Northern Territory, who is injured in NSW can be compensated without proof of fault.

Accepted Answer

A) True 
 B)False  True

Question 4

In which case did the High Court decide that a duty of care could arise in relation to both the giving of information and the giving of advice?

Accepted Answer

A)  Esanda Finance Corporation v Peat Marwick Hungerfords (1997) 71 ALJR 448. 
B)  L Shaddock & Associates v Parramatta City Council (No 1) (1981) 150 CLR 225. 
C)  Donoghue v Stevenson [1932] AC 562. 
D)  Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465. 
A)  Esanda Finance Corporation v Peat Marwick Hungerfords (1997) 71 ALJR 448. 
B)  L Shaddock & Associates v Parramatta City Council (No 1) (1981) 150 CLR 225. 
C)  Donoghue v Stevenson [1932] AC 562. 
D)  Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465.

Question 5

An action for harm caused by a defective product under the Australian Consumer Law requires proof of fault.

Accepted Answer

A) True 
 B)False

Question 6

A prosecution for criminal negligence means a civil action cannot be taken.

Accepted Answer

A) True 
 B)False

Question 7

Under the civil liability acts, a 'Good Samaritan' will still be liable for an act done:

Accepted Answer

A)  In assisting a person who has not been injured but who is at risk of being injured. 
B)  While the Good Samaritan is intoxicated. 
C)  In giving advice about the assistance of a person who has not been injured but who is at risk of being injured. 
D)  Honestly and without recklessness. 
A)  In assisting a person who has not been injured but who is at risk of being injured. 
B)  While the Good Samaritan is intoxicated. 
C)  In giving advice about the assistance of a person who has not been injured but who is at risk of being injured. 
D)  Honestly and without recklessness.

Question 8

What is a non-delegable duty of care?

Accepted Answer

A non-delegable duty of care cannot be p

Question 9

Do you think it appropriate that volunteers and 'Good Samaritans' be protected from the consequences of their carelessness? Explain your answer.

Accepted Answer

It is important to consider the balance

Question 10

Under common law, an occupier owes a duty of care to all people coming onto their premises, including trespassers. Why do you think the courts extended this duty of care to trespassers? Do you think that the courts' approach was justified?

Accepted Answer

The questi

Question 11

In what circumstances will an employer be vicariously liable for the negligent act of an employee?

Accepted Answer

A)  Always. 
B)  Only if the employee is an independent contractor. 
C)  Never. 
D)  Only if the negligent act was carried out in the course of their employment. 
A)  Always. 
B)  Only if the employee is an independent contractor. 
C)  Never. 
D)  Only if the negligent act was carried out in the course of their employment.

Question 12

Which of the following statements about product liability is NOT correct?

Accepted Answer

A)  Sellers and repairers are under similar duties to manufacturers and distributors. 
B)  Where there is a possibility for an intermediate inspection of the goods and the inspection is done negligently, the intermediary may be liable. 
C)  A distributor of a product which is dangerous per se owes a duty to give adequate warning to take precautions. 
D)  A manufacturer will only be liable under the Australian Consumer Law if they are shown to have been negligent. 
A)  Sellers and repairers are under similar duties to manufacturers and distributors. 
B)  Where there is a possibility for an intermediate inspection of the goods and the inspection is done negligently, the intermediary may be liable. 
C)  A distributor of a product which is dangerous per se owes a duty to give adequate warning to take precautions. 
D)  A manufacturer will only be liable under the Australian Consumer Law if they are shown to have been negligent.

Question 13

For an occupier, where the risk is obvious, the duty is minimal.

Accepted Answer

A) True 
 B)False

Question 14

In order to succeed in an action against an occupier, the plaintiff does not have to establish that the defendant has occupation as long as ownership can be established.

Accepted Answer

A) True 
 B)False

Question 15

It is easier to take action against a manufacturer of a defective product under consumer protection legislation than under the common law because:

Accepted Answer

A)  It is quicker and cheaper. 
B)  There is no need to prove fault. 
C)  Statute law takes precedence over the common law. 
D)  The manufacturer is strictly liable. 
A)  It is quicker and cheaper. 
B)  There is no need to prove fault. 
C)  Statute law takes precedence over the common law. 
D)  The manufacturer is strictly liable.

Question 16

In Deatons v Flew (1949) 79 CLR 370, why was the hotelier NOT liable to the injured customer?

Accepted Answer

A)  Because the barmaid lost her temper. 
B)  Because the injured customer had provoked the barmaid and was contributorily negligent. 
C)  Because the barmaid's actions were outside the scope of her employment. 
D)  Because the barmaid was not an employee. 
A)  Because the barmaid lost her temper. 
B)  Because the injured customer had provoked the barmaid and was contributorily negligent. 
C)  Because the barmaid's actions were outside the scope of her employment. 
D)  Because the barmaid was not an employee.

Question 17

Pure economic loss means there is no physical damage or injury.

Accepted Answer

A) True 
 B)False

Question 18

Vicarious liability can make a person liable for the wrongful acts of another if certain criteria are satisfied.

Accepted Answer

A) True 
 B)False

Question 19

Occupiers never owe a trespasser a duty of care.

Accepted Answer

A) True 
 B)False

Question 20

The decision in Australian Safeway Stores Pty Ltd v Zaluzna (1986) 162 CLR 479 means that:

Accepted Answer

A)  Occupiers of property owe a duty of care to anyone who enters their premises. 
B)  The duty of an occupier varies with the circumstances of a person's entry. 
C)  An occupier's duty of care is measured by their response to a foreseeable risk. 
D)  All of the above. 
A)  Occupiers of property owe a duty of care to anyone who enters their premises. 
B)  The duty of an occupier varies with the circumstances of a person's entry. 
C)  An occupier's duty of care is measured by their response to a foreseeable risk. 
D)  All of the above.

Exam 6: Applications of Negligence to Business

An auditor will never under any circumstances owe a duty of care to a third party.

Liability for criminal negligence might arise because:

A driver of a vehicle registered in the Northern Territory, who is injured in NSW can be compensated without proof of fault.

In which case did the High Court decide that a duty of care could arise in relation to both the giving of information and the giving of advice?

An action for harm caused by a defective product under the Australian Consumer Law requires proof of fault.

A prosecution for criminal negligence means a civil action cannot be taken.

Under the civil liability acts, a 'Good Samaritan' will still be liable for an act done:

What is a non-delegable duty of care?

Do you think it appropriate that volunteers and 'Good Samaritans' be protected from the consequences of their carelessness? Explain your answer.

Under common law, an occupier owes a duty of care to all people coming onto their premises, including trespassers. Why do you think the courts extended this duty of care to trespassers? Do you think that the courts' approach was justified?

In what circumstances will an employer be vicariously liable for the negligent act of an employee?

Which of the following statements about product liability is NOT correct?

For an occupier, where the risk is obvious, the duty is minimal.

In order to succeed in an action against an occupier, the plaintiff does not have to establish that the defendant has occupation as long as ownership can be established.

It is easier to take action against a manufacturer of a defective product under consumer protection legislation than under the common law because:

In Deatons v Flew (1949) 79 CLR 370, why was the hotelier NOT liable to the injured customer?

Pure economic loss means there is no physical damage or injury.

Vicarious liability can make a person liable for the wrongful acts of another if certain criteria are satisfied.

Occupiers never owe a trespasser a duty of care.

The decision in Australian Safeway Stores Pty Ltd v Zaluzna (1986) 162 CLR 479 means that:

Legal Foundations

Origins of Australian Law

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: The Law of Torts and Negligence

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties, Discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Agency

Introduction to Companies and Incorporated Associations

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goods

Electronic commerce

Property and mortgages

Intellectual propert

Ethics and business practice

Criminal law in a business context

Restrictive trade practices

Negotiable instruments

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

Consumer Credit and Privacy

Ethics and Regulations in Marketing and Advertising

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