BU231 Chapter Notes - Chapter 4: Fiduciary, Intentional Tort, Contributory Negligence
Document Summary
Chapter 4 professional liability: the legal challenge. Professionals: those who have specialized knowledge and skills that their clients rely on and are prepared to pay for will be held to a higher standard than the ordinary person. Tort is one way to assign liability to a professional. Professional may be found liable for breach of contract if there is a contract to supply the advice. Sometimes the professional must honor fiduciary responsibilities separate from any tort or contractual obligations. Professional can cover any damages by raising fees and using insurance protection. If court awards damages to everyone who relies on bad advice, people will be discouraged from entering the profession, and they"ll raise the price of advice beyond reach. Vicious circle: most professionals have insurance and so raise fees to cover insurance costs. Then clients expect more for their money, and sue when they are disappointed.
