Management and Organizational Studies 2275A/B Chapter Notes - Chapter 22: Root Mean Square, Chartered Professional Accountant, Professional Liability Insurance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

If the cost of outside professional services becomes signi cant, the business will likely consider hiring one or more professionals as employees. They are in a duciary relationship with their employers. They may be liable for negligence for their actions. Their employers may be vicariously liable to others for their actions. Responsibilities of professionals to clients and others who rely on their work: professionals owe a range of responsibilities to their clients which can be grouped into three categories, contractual duties, tort duties, fiduciary duties. If a client is dissatis ed, most professional governing bodies have mechanisms for investigating complaints and helping to resolve disputes. Negligence is the most common tort professionals will be liable for. The professional must perform services in accordance with the standards of a reasonably competent member of that profession. The claimant must establish the basic elements of a negligence action: The professional owes the claimant a duty of care.