RMIN 5540 EXAM 1 questions and
answers graded A+
Liability Loss - correct answer ✔✔any loss that a person or an organization sustains as a result
of a claim or suit against the person or organization by someone seeking damages or some
other remedy permitted by law
Criminal Law - correct answer ✔✔the branch of law that imposes penalties for wrongs against
society
Civil Law - correct answer ✔✔a classification of law that applies to legal matters not governed
by criminal law and that protects rights and provides remedies for breaches of duties owed to
others
1) Torts.
2) Contracts.
3) Statutes. - correct answer ✔✔Legal liability is based on:
1) Tort - correct answer ✔✔a wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right
Negligence, Intentional, and Strict Liability - correct answer ✔✔The 3 tort categories are:
Negligence - correct answer ✔✔the failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others
, Intentional Torts - correct answer ✔✔a tort committed by a person who foresees (or should be
able to foresee) that his or her act will harm another person; does not necessarily have to be
formed with malicious or hostile intent
Strict Liability (Absolute Liability) - correct answer ✔✔liability imposed by a court or by a
statute in the absence of fault when harm results from activities or conditions that are
extremely dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate
2) Contract - correct answer ✔✔a legally enforceable agreement between 2/more parties in
which each party makes some promise to the other
Breach of Contract, Hold Harmless (Indemnity) Agreement - correct answer ✔✔2 ways Legal
Liability arise from Contracts:
Breach of Contract - correct answer ✔✔the failure, without legal excuse, to fulfill a contractual
promise
Hold Harmless Agreement - correct answer ✔✔a contractual provision that obligates one of the
parties to assume the legal liability of another party
Contractual Liability - correct answer ✔✔liability assumed through a hold-harmless agreement
3) Statutes - correct answer ✔✔a written law passed by a legislative body at either the federal
or state level
Strict Liability - correct answer ✔✔statute that gives organizations/persons an absolute legal
obligation to compensate other persons if certain events occur (EX: workers comp)
1) Premises and Operations.
answers graded A+
Liability Loss - correct answer ✔✔any loss that a person or an organization sustains as a result
of a claim or suit against the person or organization by someone seeking damages or some
other remedy permitted by law
Criminal Law - correct answer ✔✔the branch of law that imposes penalties for wrongs against
society
Civil Law - correct answer ✔✔a classification of law that applies to legal matters not governed
by criminal law and that protects rights and provides remedies for breaches of duties owed to
others
1) Torts.
2) Contracts.
3) Statutes. - correct answer ✔✔Legal liability is based on:
1) Tort - correct answer ✔✔a wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right
Negligence, Intentional, and Strict Liability - correct answer ✔✔The 3 tort categories are:
Negligence - correct answer ✔✔the failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others
, Intentional Torts - correct answer ✔✔a tort committed by a person who foresees (or should be
able to foresee) that his or her act will harm another person; does not necessarily have to be
formed with malicious or hostile intent
Strict Liability (Absolute Liability) - correct answer ✔✔liability imposed by a court or by a
statute in the absence of fault when harm results from activities or conditions that are
extremely dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate
2) Contract - correct answer ✔✔a legally enforceable agreement between 2/more parties in
which each party makes some promise to the other
Breach of Contract, Hold Harmless (Indemnity) Agreement - correct answer ✔✔2 ways Legal
Liability arise from Contracts:
Breach of Contract - correct answer ✔✔the failure, without legal excuse, to fulfill a contractual
promise
Hold Harmless Agreement - correct answer ✔✔a contractual provision that obligates one of the
parties to assume the legal liability of another party
Contractual Liability - correct answer ✔✔liability assumed through a hold-harmless agreement
3) Statutes - correct answer ✔✔a written law passed by a legislative body at either the federal
or state level
Strict Liability - correct answer ✔✔statute that gives organizations/persons an absolute legal
obligation to compensate other persons if certain events occur (EX: workers comp)
1) Premises and Operations.
