Are you liable?
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Questions and Answers

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?

  • 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?

  • 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)
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