RMIN 5100S - Test 3 (Atkinson) Exam
Questions and Answers (Latest 2026)
Desk - Correct Answers ✅- people with an organized desk
tend to prefer property, while people with an unorganized
desk tend to like liability
Liability Risk - Correct Answers ✅you are responsible for
someone else or their stuff.
Legal Liability - Correct Answers ✅- Criminal: crimes
against society. Punishable by imprisonment and fines
- Civil: breach of duty owed to others. Punishable by money
and injunctions.
- A single act can be both: 2008-09 Salmonella Outbreak.
Major recall in 46 states of products that were contaminated
with salmonella (especially Peanut Butter paste). The
company was continuing to sell the products even after bad
tests. The CEO was sentenced to 28 years in prison.
3 Bases for Legal Liability - Correct Answers ✅1. Tort
2. Legal Liability Based on Contracts
3. Legal Liability Based on Statutes
Tort - Correct Answers ✅3 types of Tort:
1. Negligence
2. Intentional
3. Strict Liability
,RMIN 5100S - Test 3 (Atkinson) Exam
Questions and Answers (Latest 2026)
Negligence (a type of tort) - Correct Answers ✅Is based on:
- a duty of care
- breach of duty
- injury or damage
There must be proximate cause (a connection between the
breach of duty and the injury/damage)
- This is by far the #1 reason why we have liabilities
Intentional (a type of tort) - Correct Answers ✅- 2 Types:
1. Act - intends to do the action, but no intent to harm (You
run a red light and hit a car).
2. Injury - Purpose is to cause harm (assault, battery,
invasion)
Strict Liability (a type of tort) - Correct Answers ✅- liability
in the absence of Negligence and Intentional tort (aka
Absolute Liability)
- liability that is imposed even though the defendant acted
neither negligently or with the intent to cause harm
- also used to describe liability from statutes (Workers Comp.,
Dram Shop)
- examples include owning wild animals, blasting/explosive
operations, and dangerously defective products
,RMIN 5100S - Test 3 (Atkinson) Exam
Questions and Answers (Latest 2026)
Legal Liability Based on Contracts - Correct Answers
✅Breach of Contract
- failure of a seller to fulfill its promise
- in the eyes of the law, the seller "warrants" that a product is
fit for its intended use
- if a product fails to function well, the buyer will likely want
to their money back (this is not covered by insurance).
- things get a bit more serious if the product's failure results
in BI/PD (this is covered by insurance)
- Ex: a kid was able to open a child-proof container and drink
Draino (the parents can sue Draino and the latch-maker)
Hold Harmless and Indemnification Agreements
- assume legal liability for another's liability
- If Party A agrees to hold harmless and/or indemnify Party B,
then Party A has assumed a Contractual Liability
- these stipulate which company will be held legally
responsible for costs of lawsuits in the event that a
component causes BI or PD
- Ex: car companies and supplying manufacturers. In 1993,
Ford Explorers started rolling over with Firestone tires, so Ford
starting using different tires (led to big rivalry)
- Hold harmless: "we won't sue each other"
- Indemnify: "if someone sues you, we will handle it"
, RMIN 5100S - Test 3 (Atkinson) Exam
Questions and Answers (Latest 2026)
Hold Harmless and Indemnification Agreements (Liability
Based On Contracts) - Correct Answers ✅- assume legal
liability for another's liability
- If Party A agrees to hold harmless and/or indemnify Party B,
then Party A has assumed a Contractual Liability
- these stipulate which company will be held legally
responsible for costs of lawsuits in the event that a
component causes BI or PD
- Ex: car companies and supplying manufacturers. In 1993,
Ford Explorers started rolling over with Firestone tires, so Ford
starting using different tires (led to big rivalry)
- Hold harmless: "we won't sue each other"
- Indemnify: "if someone sues you, we will handle it"
Legal Liability Based on Statutes - Correct Answers ✅-
State/Federal: Statutes
- Local: ordinances
- laws passed by a legislative body that may increase liability
or make a party strictly liable
- Common Statutes:
1. Workers Comp. pays 100% of medical expenses and up to
2/3 of lost salaries for employees
2. Dram Shop Laws: GA laws allow an injured person to hold a
seller of alcohol liable if the establishment willingly serves to
someone under 21, knowingly serves to noticeably
intoxicated, and knows that person will be driving a motor
vehicle.
Questions and Answers (Latest 2026)
Desk - Correct Answers ✅- people with an organized desk
tend to prefer property, while people with an unorganized
desk tend to like liability
Liability Risk - Correct Answers ✅you are responsible for
someone else or their stuff.
Legal Liability - Correct Answers ✅- Criminal: crimes
against society. Punishable by imprisonment and fines
- Civil: breach of duty owed to others. Punishable by money
and injunctions.
- A single act can be both: 2008-09 Salmonella Outbreak.
Major recall in 46 states of products that were contaminated
with salmonella (especially Peanut Butter paste). The
company was continuing to sell the products even after bad
tests. The CEO was sentenced to 28 years in prison.
3 Bases for Legal Liability - Correct Answers ✅1. Tort
2. Legal Liability Based on Contracts
3. Legal Liability Based on Statutes
Tort - Correct Answers ✅3 types of Tort:
1. Negligence
2. Intentional
3. Strict Liability
,RMIN 5100S - Test 3 (Atkinson) Exam
Questions and Answers (Latest 2026)
Negligence (a type of tort) - Correct Answers ✅Is based on:
- a duty of care
- breach of duty
- injury or damage
There must be proximate cause (a connection between the
breach of duty and the injury/damage)
- This is by far the #1 reason why we have liabilities
Intentional (a type of tort) - Correct Answers ✅- 2 Types:
1. Act - intends to do the action, but no intent to harm (You
run a red light and hit a car).
2. Injury - Purpose is to cause harm (assault, battery,
invasion)
Strict Liability (a type of tort) - Correct Answers ✅- liability
in the absence of Negligence and Intentional tort (aka
Absolute Liability)
- liability that is imposed even though the defendant acted
neither negligently or with the intent to cause harm
- also used to describe liability from statutes (Workers Comp.,
Dram Shop)
- examples include owning wild animals, blasting/explosive
operations, and dangerously defective products
,RMIN 5100S - Test 3 (Atkinson) Exam
Questions and Answers (Latest 2026)
Legal Liability Based on Contracts - Correct Answers
✅Breach of Contract
- failure of a seller to fulfill its promise
- in the eyes of the law, the seller "warrants" that a product is
fit for its intended use
- if a product fails to function well, the buyer will likely want
to their money back (this is not covered by insurance).
- things get a bit more serious if the product's failure results
in BI/PD (this is covered by insurance)
- Ex: a kid was able to open a child-proof container and drink
Draino (the parents can sue Draino and the latch-maker)
Hold Harmless and Indemnification Agreements
- assume legal liability for another's liability
- If Party A agrees to hold harmless and/or indemnify Party B,
then Party A has assumed a Contractual Liability
- these stipulate which company will be held legally
responsible for costs of lawsuits in the event that a
component causes BI or PD
- Ex: car companies and supplying manufacturers. In 1993,
Ford Explorers started rolling over with Firestone tires, so Ford
starting using different tires (led to big rivalry)
- Hold harmless: "we won't sue each other"
- Indemnify: "if someone sues you, we will handle it"
, RMIN 5100S - Test 3 (Atkinson) Exam
Questions and Answers (Latest 2026)
Hold Harmless and Indemnification Agreements (Liability
Based On Contracts) - Correct Answers ✅- assume legal
liability for another's liability
- If Party A agrees to hold harmless and/or indemnify Party B,
then Party A has assumed a Contractual Liability
- these stipulate which company will be held legally
responsible for costs of lawsuits in the event that a
component causes BI or PD
- Ex: car companies and supplying manufacturers. In 1993,
Ford Explorers started rolling over with Firestone tires, so Ford
starting using different tires (led to big rivalry)
- Hold harmless: "we won't sue each other"
- Indemnify: "if someone sues you, we will handle it"
Legal Liability Based on Statutes - Correct Answers ✅-
State/Federal: Statutes
- Local: ordinances
- laws passed by a legislative body that may increase liability
or make a party strictly liable
- Common Statutes:
1. Workers Comp. pays 100% of medical expenses and up to
2/3 of lost salaries for employees
2. Dram Shop Laws: GA laws allow an injured person to hold a
seller of alcohol liable if the establishment willingly serves to
someone under 21, knowingly serves to noticeably
intoxicated, and knows that person will be driving a motor
vehicle.
