LAW 122 Lecture Notes - Lecture 4: Stock Market, Financial Statement, Objective Test
2 Apr 2017
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To compensate for harmful, risky actions conducted carelessly, but to allow for careful risk-taking. The left side: liability for everything - high caution. No one will take risks due to liability. But some risk taking is necessary for innovation, art, and even basic freedom. The right side: no liability whatsoever - high risk. Others will be injured, and life becomes too risky. All the above 3 elements must be met to impose liability for the tort of negligence. Slip and fall on icy sidewalk in front of store. Opinion or either plaintiff or defendant does not matter. Example of well-established duties of care: doctor-patient, lawyer - client, and manufacturer of goods - user of goods) Special case for duty of care for statements. Instead of being physical, it is a written statement. This statement can be seen around the world and if (financial statements are not seen as being used for a investment decision, instead it is for mangement)
