Use this fact situation to answer the related questions that follow. A large financial institution carries on business over the Internet;however,its computer systems are somewhat old and have not been updated with the latest security software available.A hacker now gets into the system and gains access to all of the personal information of the company's customers.
In addition to any sanctions created by federal and provincial legislation,the company will be
A)liable for damages for invasion of privacy.
B)liable in damages for nuisance.
C)liable in damages for negligence.
D)liable in damages for trespass.
E)liable in damages for defamation.

Question

Quizplus · Accepted Answer

The company is likely to be held liable in damages for negligence because they did not update their security software and thereby neglected their responsibility to safeguard their customers' personal information. They have a duty of care towards their customers and their failure to update their security measures breached that duty. This breach caused the hacker to gain access to personal information, which resulted in damages to the customers. Therefore, the company is likely to be found negligent and held liable for damages. The other options (A, B, D, E) are not applicable in this scenario.

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