Legal Liability Quiz

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Questions and Answers

What are the two types of law that can enforce legal liability?

  • Administrative and constitutional law
  • Contract and tort law
  • Civil and criminal law (correct)
  • International and domestic law

Which of the following is NOT an area of law that can give rise to liability?

  • Contracts
  • Immigration law (correct)
  • Taxes
  • Criminal law

What are the theories of liability mentioned in the text?

  • Breach of contract, negligence, strict liability, or intentional conduct.
  • Breach of contract, negligence, or intentional conduct.
  • Breach of contract, negligence, negligence per se, or intentional conduct.
  • Breach of contract, negligence, negligence per se, respondeat superior, vicarious liability, strict liability, or intentional conduct. (correct)

What must a claimant prove before liability can be established?

<p>Certain conditions or elements specific to the theory of liability being claimed. (D)</p> Signup and view all the answers

What is limited liability?

<p>A method of protection included in some business formations that shields its owners from certain types of liability and that amount a given owner will be liable for. (A)</p> Signup and view all the answers

What is product liability?

<p>Civil lawsuits between a plaintiff and defendant who furnishes defective goods that caused loss or injury. (B)</p> Signup and view all the answers

What is vicarious liability?

<p>A form of liability that exists between employers and their employees. (B)</p> Signup and view all the answers

What is respondeat superior?

<p>A legal principle that dictates when an employer is responsible for the actions of an employee. (D)</p> Signup and view all the answers

When is an employer liable for the actions of an employee?

<p>If it is unlawful, or the employee's negligent actions while working cause damages to property or injury. (C)</p> Signup and view all the answers

Flashcards

Types of law enforcing liability?

Civil law and criminal law.

Breach of contract

A failure to adhere to the terms of a valid agreement.

Negligence

Failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Limited liability

Liability protection for business owners.

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Product liability

Civil lawsuits involving defective goods causing loss or injury.

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Vicarious liability

Employers are liable for actions of their employees.

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Respondeat superior

An employer is responsible for an employee's actions.

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Employer liability

When conduct is unlawful or employee negligence causes damage/injury.

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Study Notes

Overview of Legal Liability

  • Legal liability can be enforced by either civil law or criminal law.
  • Liability concerns both civil law and criminal law and can arise from various areas of law, such as contracts, torts, taxes, or fines given by government agencies.
  • Theories of liability include breach of contract, negligence, negligence per se, respondeat superior, vicarious liability, strict liability, or intentional conduct.
  • Each theory of liability has certain conditions or elements that must be proven by the claimant before liability will be established.
  • Limited liability is a method of protection included in some business formations that shields its owners from certain types of liability and that amount a given owner will be liable for.
  • Sole proprietorships and partnerships do not include limited liability.
  • Product liability governs civil lawsuits between a plaintiff and defendant who furnishes defective goods that caused loss or injury.
  • There is a form of liability that exists between employers and their employees called vicarious liability.
  • Respondeat superior is a legal principle that dictates when an employer is responsible for the actions of an employee.
  • An employer may be held liable for the actions of an employee if it is unlawful, or the employee's negligent actions while working cause damages to property or injury.
  • An agent is a person who has the power to act on behalf of another party, and usually, a principal is liable for a contract made by the agent if the agent had actual or apparent authority to make the contract.
  • Economists use the term "legal liability" to describe the legal-bound obligation to pay debts.

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