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Questions and Answers
What is a liability risk?
What is a liability risk?
- A concept rooted in social norms
- An action obliging someone to compensate someone else for their loss (correct)
- A legal term for obligations and rules
- A financial gain from breaching an obligation
What is the social function of liability rules?
What is the social function of liability rules?
- To punish those who breach legal obligations
- To prioritize compensation over deterrence
- To provide insurance companies with profitable claims
- To ensure that people who are injured through the culpable acts of others get compensation, and to achieve deterrence (correct)
What is the difference between liability rules that prioritize compensation and those that prioritize deterrence?
What is the difference between liability rules that prioritize compensation and those that prioritize deterrence?
- Both strict liability and emphasis on proof of negligence prioritize compensation
- Both strict liability and emphasis on proof of negligence prioritize deterrence
- Strict liability prioritizes deterrence, while emphasis on proof of negligence prioritizes compensation
- Strict liability prioritizes compensation, while emphasis on proof of negligence prioritizes deterrence (correct)
