ACCA F4 - Corp and Business Law (ENG)

120 7: The law of torts and professional negligence  Part B The law of obligations

Quick Quiz

1 In tort no previous transaction or contractual relationship need exist.

True

False

2 The 'neighbour' principle was established by the landmark case

A Caparo v Dickman 1990

B Anns v Merton London Borough Council 1977

C Donoghue v Stevenson 1932

D The Wagon Mound 1961

3 When the court applies the maxim res ipsa loquitur, it is held that the facts speak for themselves and the

defendant does not have to prove anything, since the burden of proof is on the claimant.

True

False^

4 Under which circumstance will a court reduce the award of damages to a claimant?

A The claimant intervened in the chain of causality

B A natural event occurred which caused additional damage

C The claimant contributed to the loss they suffered

D The defendant acknowledged they were to blame

5 'A public company's auditors owe no duty of care to the public at large who rely on the audit report in

deciding to invest.'

This is the decision from Caparo.

True^

False

Answers to Quick Quiz

1 True. No transaction or relationship is needed.

2 C. Donoghue v Stevenson 1932

3 False. The burden of proof under res ipsa loquitur is reversed, the defendant must prove that they was not

negligent.

4 C. This option is contributory negligence.

5 True. Auditors do not owe a duty of care to the public at large.

Now try the questions below from the Practice Question Bank

Number

15, 16