Question 1Explain how the test used to determine the standard of care required from professionals is different from the test used to determine the standard of care required generally.
The standard imposed is more correctly stated as the standard of care expected from a reasonable professional in the same circumstances. That is, where the person is a professional, it is the reasonable doctor, lawyer, accountant, etc. Thus, the standard required from a professional is much higher than that required from a normal person. A professional is required to have that degree of skill and ability which would be present in a reasonably experienced member of the profession, but must exercise that skill as a responsible professional. When the average standard or accepted practice of the profession falls below what the judge considers appropriate from a reasonably prudent professional, a higher standard will be required. Thus, common practice will not always justify the conduct of a professional in a given situation.
Question 2Mrs. Junkins hired an agent to sell her motel and told the agent that the gross revenues for the previous year were $160,000 and the net profit was $9,700. Mrs. Junkins knew this information was false and she gave it to the agent to use to persuade purchasers. This information was given to the purchaser Mr. Bedard and he relied on it in deciding to buy the motel. After an unprofitable year Mr. Bedard found out the information received about the revenues and profits was false. He comes to you for advice as to his options. What do you advise and why?This problem involves the concept of fraudulent misrepresentation occurring in the course of negotiating a contract.
A fraudulent misrepresentation occurs when a party makes a deliberately false statement of fact and that false statement is relied upon by...