Reference no: EM133330973

Questions

1. Some people argue that liability insurance undermines the deterrent effect of tort law. This is because

a. Only insurance companies can be sued in tort law.

b. Organizations and people with insurance may be less careful.

c. Organizations and people with insurance cannot be sued.

d. Tort law does not have a deterrent effect.

2. After hearing from its lawyers, Tutum Inc replaced some of its employees with independent contractors and trained its remaining employees. The most likely reason for the company's actions is that it wants to avoid

a. Vicarious liability.

b. Injunctions.

c. Nominal damages.

d. Expectation damages.

3. A car dealership hires a window-washing company to wash the dealership's large showroom windows once each month. One day, the window-washers' van backs into Mohan's vehicle, which he brought to the dealership for repair. Which of the following statements is FALSE?

a. Mohan can sue the dealership on the basis of vicarious liability.

b. Mohan can sue the window-washing company on the basis of vicarious liability.

c. Mohan can sue the employee who was driving the window-washing company's van.

d. If the car dealership has liability insurance, its insurance company will owe a duty to defend.

4. Vicarious liability

a. Applies to torts only if the plaintiff an the defendant had a contract.

b. Applies to torts committed by employers but not independent contractors.

c. Applies to torts that are based on negligence but not intentional torts.

d. Applies to torts committed by employees but not independent contractors.

5. Which of the following statements is TRUE?

a. Liability insurance and vicarious liability both increase the likelihood that the plaintiff will receive full compensation.

b. Liability insurance deters the policyholder from committing torts.

c. Vicarious liability is available only in employment contexts.

d. An employer that is held vicariously liable cannot rely on liability insurance to compensate the plaintiff.