7. Professional Liability - Tort Law (Part
2) Exam Questions + Verified Answers
100% correct, Update 2026
Professional Liability -
correct answer ✅Area of law pertaining to the liability of
professionals (typically to their clients) for "bad" advice or actions
When can professional liability arise? -
correct answer ✅Liability can arise under contract or tort or for
breach of fiduciary duty
What is a professional? -
correct answer ✅Professional is a person specialized knowledge or
skills that clients rely upon. Professionals are usually part of a
professional body which licenses them to practice the profession
and governs them
Professionals' Fiduciary Duty -
correct answer ✅Where a person is in a special relationship of
trust with another (e.g doctors, accountants, lawyers & their
clients), the highest form of duty of good faith (fiduciary duty) is
owed to the client.
When does breach of fiduciary duty with professionals usually
arise? -
, 7. Professional Liability - Tort Law (Part
2) Exam Questions + Verified Answers
100% correct, Update 2026
correct answer ✅Typically, Breach of fiduciary cases arise when
the fiduciary has done something for their own benefit and adverse
in interest to the client.
General rules for when fiduciary duty exists -
correct answer ✅1) The fiduciary has scope for the exercise of
some discretion or power
2) The fiduciary can unilaterally exercise that power or discretion to
affect the beneficiary's legal or practical interests.
3) The beneficiary is peculiarly vulnerable to or at the mercy of the
fiduciary holding direction or power
Example of breach of fiduciary duty with professionals -
correct answer ✅Example: Ask dentist for a recommended
orthodontist. Dentist has a direction of power and owes to client
the highest for of duty of good faith. Perhaps the doctor
recommends his wife who happens to be an orthodontist, the
doctor fails to inform the client that the orthodontist is his wife this
a breach of fiduciary duty! It's made even worse if the dentist
2) Exam Questions + Verified Answers
100% correct, Update 2026
Professional Liability -
correct answer ✅Area of law pertaining to the liability of
professionals (typically to their clients) for "bad" advice or actions
When can professional liability arise? -
correct answer ✅Liability can arise under contract or tort or for
breach of fiduciary duty
What is a professional? -
correct answer ✅Professional is a person specialized knowledge or
skills that clients rely upon. Professionals are usually part of a
professional body which licenses them to practice the profession
and governs them
Professionals' Fiduciary Duty -
correct answer ✅Where a person is in a special relationship of
trust with another (e.g doctors, accountants, lawyers & their
clients), the highest form of duty of good faith (fiduciary duty) is
owed to the client.
When does breach of fiduciary duty with professionals usually
arise? -
, 7. Professional Liability - Tort Law (Part
2) Exam Questions + Verified Answers
100% correct, Update 2026
correct answer ✅Typically, Breach of fiduciary cases arise when
the fiduciary has done something for their own benefit and adverse
in interest to the client.
General rules for when fiduciary duty exists -
correct answer ✅1) The fiduciary has scope for the exercise of
some discretion or power
2) The fiduciary can unilaterally exercise that power or discretion to
affect the beneficiary's legal or practical interests.
3) The beneficiary is peculiarly vulnerable to or at the mercy of the
fiduciary holding direction or power
Example of breach of fiduciary duty with professionals -
correct answer ✅Example: Ask dentist for a recommended
orthodontist. Dentist has a direction of power and owes to client
the highest for of duty of good faith. Perhaps the doctor
recommends his wife who happens to be an orthodontist, the
doctor fails to inform the client that the orthodontist is his wife this
a breach of fiduciary duty! It's made even worse if the dentist
