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Unformatted text preview: C HAPTER 22 P ROFESSIONAL S ERVICES Objectives After studying this chapter, you should have an understanding of: • the legal responsibilities professionals owe their clients • the governance structures of the professions • the relationship between the legal and ethical obligations of the professions Learning Outcomes • Understand the contractual, fiduciary, and tort responsibilities of professionals to their clients (pages 546 – 553) • Understand how a self-regulating profession governs and disciplines itself (pages 555 – 558) • Recognize how professionals manage legal risks (pages 554) Chapter Summary The professions regulate themselves. They create rules of practice and discipline members who do not meet the standard of care in delivering services to clients. In carrying out those services, the professional owes the client a duty of loyalty and trust, which flows from the fiduciary relationship. If professionals are negligent in performing their services, the client may proceed with a complaint against the governing body, which may discipline the professional, but this method does not provide financial compensation to the client. To recover damages, the client will have to proceed with a lawsuit. To protect themselves from payment of such damage claims, many professionals have an exclusion clause in their services contract. Most professionals are required to have an insurance policy that covers damage claims by clients. A recent protection for partners is the advent of limited liability partnerships, which protects professionals from mistakes made by their partners. Study Outline Use this outline to prepare a complete set of notes for this chapter. Responsibilities of Professionals – page 546 _______________________________________________________________________ _______________________________________________________________________ Contract responsibilities____________________________________________________ _______________________________________________________________________ Retainer ___________________________________________________________ © 2008 BY N ELSON , A DIVISION OF T HOMSON C ANADA L TD . PART 6: EMPLOYMENT AND PROFESSIONAL RELATIONSHIPS Professional service contracts____________________________________________ Fiduciary responsibilities___________________________________________________ _______________________________________________________________________ Confidentiality________________________________________________________ Privilege ____________________________________________________________ Tort responsibilities _______________________________________________________ _______________________________________________________________________ General Responsibility to third parties____________________________________________ _______________________________________________________________________ Professionals’ Risk Management Practices – page 554 Incorporation or limited liability partnerships___________________________________...
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This note was uploaded on 06/04/2009 for the course BUSINESS LAW380 taught by Professor Davidmariofarmani during the Fall '08 term at Seneca.
- Fall '08
- Business Law