Exam 6: An Introduction to the Legal Relationship

A professional is a person who possesses special knowledge or exercises special skills not normally possessed by most individuals.

Rose, a financial advisor, recommended that a client, Maureen, purchase shares in Mad Money Mutual Fund. Relying on Rose's recommendation the client purchased 100 units. The entire stock market collapsed and the value of Mad Money Mutual Fund was reduced significantly. Maureen was surprised to learn that Rose earned a commission on each unit sold to her clients. Is Rose liable to Maureen?

"Competent lawyer" means a lawyer who has and applies relevant skills, attributes, and values in a manner appropriate to each matter undertaken on behalf of a client.

If an engineer designs a bridge without consideration for the weight of traffic that would travel over the bridge, and the bridge collapses, the engineer may be

Most professionals are members of professional associations that are responsible for the establishment of

The professional under a contract implies promises to perform the services required in accordance with the standard for his or her profession, and a failure to do so would constitute ______________________.

Insurance agents, even though they are agents of companies, may be held liable for clients' losses if, when requested to do so, they fail to provide proper coverage for the contemplated loss.

It is suggested, but not legally required, that a lawyer recognize the limitations on his or her ability to handle a legal matter, and to take such steps as may be required to ensure that the client has appropriate advice, such as directing the client, if necessary, to another lawyer with greater expertise in the particular legal manner.

Professional associations are not given the authority to limit the use of the professional designation to individuals who are members in good standing in the association, or to take action under the legislation to prevent anyone not a member in good standing from holding him or herself out to the pubic as a particular professional, or offering the professional services to the public.

The liability of an engineer is limited to the client that engages the services of the engineer, and not to the subsequent purchasers of the construction project.

Breach of contract cases usually are a result of careless or negligent performance of the professional service.

Outline the responsibility of a surgeon to a patient. Is it limited only to the actual performance of the medical procedure?

A husband and wife, Michelle and William, contacted an insurance agent for coverage for the wife's business, financed by the husband. The agent negligently arranged for insurance in William's name only. When Michelle suffered a loss she thought would be covered by the policy, she discovered that her business was not covered by the insurance. In the court action that followed:

Lisa, a three-year-old girl, was having her tonsils removed. Towards the end of the surgery, Dr. Talker answered her cell phone and failed to thoroughly check for sponges in Lisa's throat. Lisa choked to death. Can Lisa's family successfully sue Dr. Talker?

Normally, a professional is only responsible in tort to the patient or client. However, in recent cases, the courts have held some professionals liable to third parties when the professional's expertise or skill was intended to be relied upon by the third party and the professional was aware of this fact.

The failure of architects to maintain their level of skill may result in a breach of their duty of care, and if loss results to the client, it may result in tort liability for negligence.

What is the "threefold test" and how is it applied in cases of negligent misrepresentation? In what way has the Supreme Court of Canada changed the application of this test?

The full and understandable explanation of the risks associated with a course of action, and the clear understanding by the client or patient is known as the duty of care.

Outline the steps that an emerging profession must take in order to establish a recognized professional status.

The normal approach for the engagement of the services of an architect is through a contract. Under the terms of the contract, the architect is usually expected to: