Questions 1, 2, and 3 Pharmacy On-Line question

1. Betsy Boomer does not own a car and she must rely on friends for transportation. Last month, Betsy asked Freda Farnsworth to drive her to the store. Freda is known to be a reckless driver, but Betsy is not in a position to be choosy. On the way to the store, Freda is distracted by Betsy and hits a telephone pole. The car, of course, is damaged, and Betsy is injured. Describe Freda's possible liability and the various defenses to or modifications of liability that her lawyer may try to employ in her defense.

2. Your neighbor's English bulldog, Cedric, is very friendly, but you wouldn't know it by looking at him. Last Monday, the substitute mail carrier met Cedric as he was approaching the mailbox. Because the mail carrier is afraid of even small dogs, he collapsed from fright at the sight of Cedric approaching, fell to the ground, and broke his left arm. A motorist, who observed this situation while driving by, rammed the neighbor's parked car. The parked car then proceeded down the street through two fences, finally stopping in Mrs. Smith's living room.

a. Is there a case for litigation involving your neighbor? ?
b. Where does the motorist's liability fit into this picture?

3. Erin Lavinsky works for the Pharmacy On-Line company in Austin, Texas. She likes to work on private matters on her business computer and has received a few infected documents. She was too lazy to update her Norton Utilities and did not realize that she was sending her infected material to her coworkers. Before long, the whole system collapsed and business was interrupted for a day until the backup system was brought up.

3. Describe the types of liability risk exposures Pharmacy On-Line is facing as a result of Erin's action.

4. If Pharmacy On-Line purchased the ISO e-commerce liability endorsement, would it be covered for the liability?

5. If Erin penetrated into the system and obtained information about the customers, and if she later sold that information to a competitor, what would be the liability ramifications? Is there insurance coverage for this breach of privacy issue?

Text Book: Enterprise and Individual Risk Management (v. 1.0).