Question

LEGAL CONCEPTS AFFECTING LIABILITY, Please Explain and give an example below:

1. Prudent person concept?

2. Liability For the acts of others?

3. Lack of Privileged communication?

Answer 1

Ans- 1. The prudent-person rule is a guideline for making financial decisions using the principles of common sense and reasonable risk.

The rule is commonly cited for trustees and guardians tasked with administering assets on behalf of others.

Federal rules for pension fund managers contain similar cautions against reckless investing.

For example, a pension fund manager hired to run a fund in behalf of the employees of a company is required to make investments that have a reasonable possibility of turning a profit.

2. Legal responsibility of the actions one person performs could transfer to another. This often depends on the inclusion of a company environment and knowledge of some type of criminal activity. However, one individual may have no understanding of these matters and little or no involvement other than his or her presence during the activity.

Example- Sometimes, the owner of a company becomes responsible for the illegal actions of one person within his or her company. Other times, these issues occur with parents of children that commit crimes through using items taken from home. This may occur with handguns, weapons or drugs.

3. Privileged communication protects the confidentiality of interactions between two parties, whom the law classifies as entitled to a private, protected relationship.

The lack of protection typically extends to suspected abuse of children or other vulnerable people, such as the elderly or disabled. Even between spouses, privileged communication typically does not apply in cases involving the harm, or the threat of harm, to a spouse or children in the couple's care, or to crimes jointly committed with the other spouse.

Example- a. Some relationships that provide the protection of privileged communication include attorney-client, doctor-patient, priest-parishioner, two spouses, and (in some states) reporter-source.

b. In a meeting room–where the parties have a reasonable expectation that others might not overhear them.

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