CISR - Commercial Casualty I: Questions With Expert
Solutions
Give the 2 reasons why a named Insured adds another person or organization
as an addt'l Insd Right Ans - Close or business (contractual) relationship
What are the three categories of legal liability? Right Ans - Tort, Statutory,
& Contractual
Tort Liability Right Ans - a wrongful action or omission that harms a
person or business, prompting the injured party to seek compensation in civil
court. As a result, the guilty person (the defendant or tortfeasor) bears legal
liability; Differs from crime in that it is a violation of a common or civil law
Statutory Liability Right Ans - liability arising out of specific rules or laws
(statutes) enacted by a legislative body providing direction or prohibition;
overrides common law; Ex/ Dram/Liquor, Americans w Disabilities Act, WC,
etc.
Contractual Liability Right Ans - an agreement between two or more
parties, which creates an obligation to do or not to do a particular thing; Ex/
Lessor-Lessee, Owner-Contractor, etc.
Warranty Right Ans - assurance made by seller of goods, either express or
implied, that references quality/fitness of goods/services & is relied upon by
buyer of goods/services
What are the 4 types of Tort Liability? Right Ans - Negligence, Intentional,
Strict, & Absolute
Negligence Tort Liability Right Ans - the failure to act as a reasonable
person would under the same or similar circumstances
Intentional Torts Right Ans - An intentional or voluntary act where the
person or organization committing the act is expressly or implicitly deemed to
have possessed intent or purpose to injure
, Example of an Intentional Tort Right Ans - Libel, wrongful entry/eviction,
assault/battery, false arrest, etc.
Strict Liability Tort Right Ans - concept applied by the courts in PRODUCT
liability suits in which a manufacturer, distributor or seller is liable for any
and all defective or hazardous products that unduly threaten a consumer's
health and safety; Proximate cause NOT applied & all that has to be proven is
product that caused damage was defective
Absolute Liability Right Ans - liability without regard to fault; All that has
to be proved is that an injury or damage occurs because of the activities;
ACCIDENTAL, couldn't be helped
4 Requirements of a Negligent Tort Right Ans - Must be duty owed, breach
of that duty, actual injury/loss must occur, & there has to be close cause &
effect (proximate cause) relationship btwn breach of duty & injury/loss
Direct Liability Right Ans - results from the CONDUCT of a person or
organization that is responsible for injury or property damage to another
Example of Direct Liability Right Ans - Deem's Market, Inc. fails to clean up
a food spill in one of its grocery aisles, and a patron slips on the food, falls and
breaks several bones. The claimant sues Deem's Market, Inc. because it
directly caused the injury
Vicarious Liability Right Ans - liability of one party based upon the liability
of another. It is said that liability is imputed (TRANSFERRED from one party
to the other)
Example of Vicarious Liability Right Ans - While delivering groceries, an
employee of Deem's Market, Inc. causes an auto accident in which three
people are injured. The injured parties bring a claim against the employee
who directly caused the accident, but they also bring a claim against Deem's
Market, Inc., because Deem's Market, Inc. can be held vicariously liable for the
actions of its employees done within the scope of their employment;
Employer/Employee, Principal/Agent, Owner/Manager, etc.
What are the types of damages that may be awarded in a civil court case?
Right Ans - Compensatory & Punitive/Exemplary Damages
Solutions
Give the 2 reasons why a named Insured adds another person or organization
as an addt'l Insd Right Ans - Close or business (contractual) relationship
What are the three categories of legal liability? Right Ans - Tort, Statutory,
& Contractual
Tort Liability Right Ans - a wrongful action or omission that harms a
person or business, prompting the injured party to seek compensation in civil
court. As a result, the guilty person (the defendant or tortfeasor) bears legal
liability; Differs from crime in that it is a violation of a common or civil law
Statutory Liability Right Ans - liability arising out of specific rules or laws
(statutes) enacted by a legislative body providing direction or prohibition;
overrides common law; Ex/ Dram/Liquor, Americans w Disabilities Act, WC,
etc.
Contractual Liability Right Ans - an agreement between two or more
parties, which creates an obligation to do or not to do a particular thing; Ex/
Lessor-Lessee, Owner-Contractor, etc.
Warranty Right Ans - assurance made by seller of goods, either express or
implied, that references quality/fitness of goods/services & is relied upon by
buyer of goods/services
What are the 4 types of Tort Liability? Right Ans - Negligence, Intentional,
Strict, & Absolute
Negligence Tort Liability Right Ans - the failure to act as a reasonable
person would under the same or similar circumstances
Intentional Torts Right Ans - An intentional or voluntary act where the
person or organization committing the act is expressly or implicitly deemed to
have possessed intent or purpose to injure
, Example of an Intentional Tort Right Ans - Libel, wrongful entry/eviction,
assault/battery, false arrest, etc.
Strict Liability Tort Right Ans - concept applied by the courts in PRODUCT
liability suits in which a manufacturer, distributor or seller is liable for any
and all defective or hazardous products that unduly threaten a consumer's
health and safety; Proximate cause NOT applied & all that has to be proven is
product that caused damage was defective
Absolute Liability Right Ans - liability without regard to fault; All that has
to be proved is that an injury or damage occurs because of the activities;
ACCIDENTAL, couldn't be helped
4 Requirements of a Negligent Tort Right Ans - Must be duty owed, breach
of that duty, actual injury/loss must occur, & there has to be close cause &
effect (proximate cause) relationship btwn breach of duty & injury/loss
Direct Liability Right Ans - results from the CONDUCT of a person or
organization that is responsible for injury or property damage to another
Example of Direct Liability Right Ans - Deem's Market, Inc. fails to clean up
a food spill in one of its grocery aisles, and a patron slips on the food, falls and
breaks several bones. The claimant sues Deem's Market, Inc. because it
directly caused the injury
Vicarious Liability Right Ans - liability of one party based upon the liability
of another. It is said that liability is imputed (TRANSFERRED from one party
to the other)
Example of Vicarious Liability Right Ans - While delivering groceries, an
employee of Deem's Market, Inc. causes an auto accident in which three
people are injured. The injured parties bring a claim against the employee
who directly caused the accident, but they also bring a claim against Deem's
Market, Inc., because Deem's Market, Inc. can be held vicariously liable for the
actions of its employees done within the scope of their employment;
Employer/Employee, Principal/Agent, Owner/Manager, etc.
What are the types of damages that may be awarded in a civil court case?
Right Ans - Compensatory & Punitive/Exemplary Damages
