Law Legal Studies

Legal Principles and Remedies

1,705 Questions

This hub provides practice questions on tort liability, professional negligence, and compensatory damages. It covers key legal principles related to contracts, product liability, and defenses like comparative negligence. These topics are vital for law students and candidates preparing for judiciary examinations.

Tort and vicarious liabilityNegligence and professional liabilityCompensatory and punitive damagesContract breach remediesLegal defense strategies

Legal Principles and Remedies Questions

Multiple choice

Causa Proxima implies that

  1. The insurer is liable to compensate for the loss only when the nearest or immediate cause of loss is covered by the insurance policy

  2. The insured must take all possible steps to minimise the loss of subject matter of insurance

  3. The insurer is liable to pay all the damages made to the property, whether the cause of damage is insured or not

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It means that the insurer is liable to compensate for the loss only when the nearest or immediate cause of loss is covered by the insurance policy. If the risk insured is the outcome of a remote cause which is not insured against, the insurer is not liable to pay the compensation. For instance, a ship is insured against rats and rats makes a hole in the ship and water starts entering into it. The ship is anchored at a port for repairs, and cargo is unloaded for it. In the process of unloading the cargo is partly damaged due to careless handling and the loss of cargo is not covered by marine insurance policy. It is not insured, and it is the proximate cause of loss, the insurer is not liable to pay any compensation.

Multiple choice

Jettison Clause is used

  1. To save the ship from sinking

  2. To cover the losses sustained by the ship owner due to wilful conduct of the master of ship

  3. To cover the loss caused to the ship by the negligence of the master of the ship

  4. To cover the risk arising out of collision between two ships
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Jettison Clause is used to save the ship from sinking.. It means throwing overboard a part of ship's cargo so as to reduce her wieght or to save other goods. The cargo is thrown deliberately to save it from sinking. Jettison covers the loss arising out of such throwing of goods.

Multiple choice

Contingent liability is shown due to

  1. convention of full disclosure

  2. convention of conservatism

  3. convention of materiality

  4. dual aspect concept
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A Correct answer
Explanation

The convention of full disclosure requires that all material information, including contingent liabilities, must be disclosed in the financial statements or footnotes to ensure transparency.

Multiple choice

What type of liability is possessed by surety?

  1. Same as that of principal debtor

  2. Not same as that of principal debtor

  3. Same as that of creditor

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to Sec-128 of the Contract Act, 1872 surety's liability is co-extensive with that of principal debtor.

Multiple choice

What is the effect of surety's death?

  1. Discharge of surety from liability

  2. Discharge of principal debtor from liability

  3. Rights of creditor comes to an end

  4. None of these
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A Correct answer
Explanation

When surety dies then his liability comes to an end.

Multiple choice

Which of the following statements is incorrect?

  1. Liability of surety and principal debtor is joint and several.

  2. Sometimes surety is liable not to the full extent as that of principal debtor.

  3. In contract of guarantee there can also be a surety.

  4. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Because all the above said statements are correct according to the Contract Act, 1872.

Multiple choice

What type of loss is covered by contract of indemnity?

  1. Loss caused by human agency

  2. Loss caused by natural agency

  3. Loss caused by accidents

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to Sec- 124 of the Contract Act, 1872 indemnity contract covers the loss caused by human agency.

Multiple choice

Directions: Read the passage/argument and answer the question that follows it.

In a closely watched decision, the US Supreme Court overturned damages of $79.5m against Philip Morris that were awarded by a jury in 2007. The case was about an Oregon man who had smoked for 42 years and died of lung cancer. The Supreme Court decreed that the jury award to his widow had overstepped the mark by punishing the cigarette-maker for harm done to others, but it failed to set any ceiling on future punitive-damage awards and sent the case back to state of Oregon Supreme Court for a new hearing.

Which of the following is the most serious objection to the ruling of the US Supreme Court?

  1. The Supreme Court has quashed a decision given by one of its lower courts.

  2. The court has left the entire field open by not defining how much is too much.

  3. The case has been decided by the court without referring to similar precedents.

  4. The court has adjudicated upon a case involving a medical question without referring it to a medical panel.

  5. The award of the court has the potential to render bankrupt one of the most important players in the cigarette industry.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In principle and in practice both, a higher court does have the authority to quash a decision given by its lower courts. Adjudicating upon appeals from lower courts is what it is meant for. In principle, it cannot be faulted on this ground, hence, ruling out option (1). Option (3) is not justified either within the context or outside of it. The case did not involve a medical question. It is certain that the man in question had died of lung cancer due to heavy cigarette smoking. The real question is that of deciding to what extent the company responsible for harm done to a man and its liability in this regard. Option (4), therefore, is incorrect. Option (5) addresses a very secondary question, which is definitely taken into account while awarding punitive damages but it is certainly not a major factor. It is mainly the gravity of the offence that is being discussed.