LAW 122 Study Guide - Final Guide: Product Liability, Professional Negligence In English Law, Strict Liability
14 Feb 2017
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Risk management - the process of identifying, evaluating, and responding, to the possibility of harmful events. Avoidance - avoid risks in which legal liability would outweigh sales profits. Reduction - bank will require a business to grant a mortgage as collateral for a loan. Shifting - employee vs independent contractor (i. e. vicarious liability vs company not liable) Acceptance - some risks are not worth shifting/reducing. Insurance - a contract in which one party agrees, in exchange for a price, to pay a certain amount of money if another party suffers a loss. Liability insurance - provides a benefit if the purchaser is held liable for wrongdoing. Includes duty to defend - insurance company is responsible for the litigation if customer is sued by 3rd part. Property insurance - provides a benefit if the purchaser"s property is damaged, lost, or destroyed. Exclusion and limitation clauses - contractual term that changes the usual rules of liability.
