Chapter 12 Self-test questions

In the case of Spartan Steel v Martin & Co. Contractors Ltd. [1973], it was held that the claimants could receive damages for:

Damages for all physical and economic losses.

Damages only for the losses associated with the physical damage (damage to the furnace and the 'lost' molten metal).

Damages only for the losses associated with pure economic loss.

No damages.

Weller v Foot and Mouth Research Institute established the proposition that a claimant who has suffered pure economic loss (not associated with physical negligence) may successfully bring a claim and be compensated.

True

False

Weller v Foot and Mouth Research Institute is authority for the proposition that actions for losses attributed to _____ ________ loss are not compensatable as they are not linked with economic losses associated with physical negligence.

Which of the following is NOT one of the factors that establish when liability for a negligent misstatement will be imposed?

The advice is volunteered by the adviser, in the absence of a request.

The adviser knows that his advice will be communicated to the advisee, either specifically or as a member of an ascertainable class, in order that it should be used by the advisee for that purpose.

It is known that the advice so communicated is likely to be acted upon by the advisee for that purpose without independent inquiry.

It is so acted upon by the advisee to his detriment.

Economic losses associated with physical negligence are recoverable by the injured party. Losses for pure economic loss are not recoverable.

True

False

The general rule preventing claims based on pure economic loss is subject to exception of where a ________ __________ of proximity exists between the parties that elevates the defendant's responsibility to the claimant.

Which of the following may claim damages for a psychiatric injury when in the zone of physical danger and fearing for his/her own safety?

Any person within 50 yards of the incident.

The claimant held as a tertiary victim.

The claimant held as a secondary victim.

The claimant held as a primary victim.

To establish liability for a negligent misstatement, the claimant needs to demonstrate a proximity of relationship between themself and the tortfeasor, as defined in Donoghue v Stevenson.

True

False

Claims involving psychiatric injury are more commonly referred to as claims for ________ shock.

To be held by a court as a secondary victim, which of the following is NOT one of the tests used?

There must exist close proximity between the claimant and the person suffering harm.

The claimant must have feared for his/her personal safety.

The claimant must have been present at the scene of the accident or present in the immediate aftermath.

The claimant must have perceived directly the events of the accident or the immediate aftermath.

Persons who have experienced a psychiatric, rather than physical injury, from having been in the zone of physical danger and being placed in fear of personal danger are referred to as 'primary victims'.

True

False

In Bourhill v Young, Bourhill's claim failed as she could not establish herself as a primary or __________ victim.

When faced with a claim from an employee that he/she is suffering from stress due to their workload, what action must an employer take?

The employer need not take any action.

The employer must reduce the employee's stress regardless of any costs involved.

The employer may dismiss the employee for 'some other substantial reason.'

The employer must take reasonable steps to reduce the employee's workload.

The tests to be satisfied when establishing liability as a secondary victim are: 1) There must exist close proximity between the claimant and the person suffering harm (such as close tie of love and affection and so on). 2) The claimant must have been present at the scene of the accident or there in the immediate aftermath. 3) The claimant must have perceived directly the events of the accident or the immediate aftermath.

True

False

Those persons who have experienced psychiatric injury from having been placed in fear of personal harm by being in the zone of physical danger are referred to as _______ victims.

Which one of the following statements is correct?

In Spartan Steel v Martin & Co the claimant was able to recover for all the losses suffered as a result of the defendant's negligence in cutting the power cable supplying electricity to the claimant's factory.

In Spartan Steel v Martin & Co the claimant was able to recover for the damage to the melt that was in the furnace at the time of the power cut and the loss of profit which would have been made on the sale of that melt.

In Spartan Steel v Martin & Co the claimant was only able to recover for the damage to the melt that was in the furnace at the time of the power cut.

The tort of negligence does not allow recovery for any type of economic loss.

In Hinz v Berry the Court of Appeal established that in addition to damages awarded in claims for nervous shock, damages may also be awarded for any grief and sorrow associated with the incident.

True

False

The modern tests used to establish a 'secondary victim' were created by the House of Lords in the case ______ v Chief Constable of South Yorkshire.

In the case of Spartan Steel v Martin & Co. Contractors Ltd. [1973], it was held that the claimants could receive damages for:

Damages for all physical and economic losses.

Damages only for the losses associated with the physical damage (damage to the furnace and the 'lost' molten metal).

Damages only for the losses associated with pure economic loss.

No damages.

Awards of compensation for stress-related illness are not recoverable as they are not reasonably foreseeable.

True

False

Where a business professional makes a statement that a person relies on, but the statement turns out to have been negligently made, and this leads to pure economic loss, there may be liability for the negligent misstatement.

True

False

Liability for pure economic loss will only be recoverable where: the person has a responsibility, or has assumed a responsibility for their statement to the claimant; a duty of care can be demonstrated to exist between the parties; and the tests as established in Bourhill v Young are satisfied.

True

False

To establish the liability for economic losses of, for example, an accountant who has negligently prepared information requested by the claimant, the defendant accountant must be precisely aware of the claimant's intended use of this information.

True

False

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