NPPE Professional Liability 4

Question 1

An architect discovers a design error after construction is complete that increases the client's maintenance costs but poses no safety risk. What is the architect's primary obligation?

Accepted Answer

Disclose the error to the client and discuss remedies

Answer

Professional ethics require disclosure of known errors to the client so remedies can be discussed, even when safety is not at issue.

Question 2

Under the doctrine of res ipsa loquitur, a professional may be found negligent when:

Accepted Answer

The harm would not ordinarily occur without negligence and the professional had control

Answer

Res ipsa loquitur allows negligence to be inferred when the type of harm normally implies negligence and the defendant controlled the instrumentality.

Question 3

A professional liability policy with a $500,000 per-claim limit and a $1,000,000 aggregate limit faces three claims of $400,000 each in one policy year. What is the maximum the insurer will pay?

Accepted Answer

$1,000,000

Answer

The aggregate limit caps total payouts across all claims in the policy period; payments stop once $1,000,000 is reached regardless of individual claim amounts.

Question 4

Which contractual clause most directly limits the professional's total financial exposure to a client in a dispute?

Accepted Answer

Limitation of liability clause

Answer

A limitation of liability clause caps the maximum amount the professional can owe the client, directly bounding financial exposure.

Question 5

When a third party (not a client) suffers harm due to a professional's negligent work, the third party may seek recovery under:

Accepted Answer

Negligence tort law, if foreseeable harm was caused

Answer

Third parties lacking privity of contract may still sue in tort for negligence if the harm to them was reasonably foreseeable.

NPPE - National Professional Practice Examination Practice Test

NPPE - National Professional Practice Examination Practice Test

NPPE Professional Liability 4