NPPE Professional Liability 2

Question 1

Under which doctrine can a licensed professional engineer be held personally liable even when acting as an employee of a corporation?

Accepted Answer

Personal professional liability

Answer

Respondeat superior

Answer

Corporate veil doctrine

Answer

Vicarious liability only

Question 2

A structural engineer stamps drawings that contain a calculation error leading to a roof collapse. No one is injured, but the building owner incurs $400,000 in repair costs. Which type of loss is recoverable in a negligence claim?

Accepted Answer

Recoverable property damage loss

Answer

Non-recoverable pure economic loss

Answer

Recoverable consequential economic loss

Answer

Non-recoverable speculative loss

Question 3

Which limitation period most commonly applies to professional negligence claims in Canadian common law provinces?

Accepted Answer

2 years from discovery

Answer

1 year from the act

Answer

6 years from the act

Answer

10 years from completion of project

Question 4

An engineer provides a geotechnical report to Client A. Client B, a subsequent purchaser, relies on the report and suffers loss when the findings prove inaccurate. Which principle governs whether the engineer owes a duty to Client B?

Accepted Answer

Reasonable foreseeability and proximity (Anns/Cooper test)

Answer

Privity of contract

Answer

The neighbour principle from Donoghue v Stevenson only

Answer

Strict liability

Question 5

What is the primary purpose of errors and omissions (E&O) insurance for professional engineers?

Accepted Answer

To indemnify the professional against claims arising from negligent professional services

Answer

To fund regulatory investigations

Answer

To cover bodily injury on construction sites

Answer

To satisfy provincial bonding requirements

Question 6

In the context of Canadian engineering practice, what does 'standard of care' mean in a professional negligence action?

Accepted Answer

The level of skill and care expected of a reasonably competent engineer in the same specialty

Answer

The care required by the provincial engineering act

Answer

The care stipulated in the contract

Answer

The highest possible standard of practice