COMMERCIAL CASUALTY 1 TEST REVIEW
QUESTIONS SOLVED ACCURATELY
Legal Liability - CORRECT ANSWER✅✅✅Responsibility/Obligation to others
Tort Liability - CORRECT ANSWER✅✅✅A civil legal wrong against another, the courts
often assess monetary damages
Negligence - CORRECT ANSWER✅✅✅Failure to act as a reasonable person would under
the same circumstances
4 parts of negligence - CORRECT ANSWER✅✅✅1. Duty owed
2. Breach of duty
3. Damages
4. Proximate cause
Intentional Tort - CORRECT ANSWER✅✅✅Expressly or implicitly deemed to have
possessed intent or purpose
Strict Liability - CORRECT ANSWER✅✅✅Applied in product liability suits in which a
manufacturer, seller is liable for any and all defective products that threaten a consumers safety
No proximate cause is needed, you only need to prove that the product that caused damage was
defective
ex. large man gets hurt using a ladder that was supposed to support someone who weighed less
Absolute liability - CORRECT ANSWER✅✅✅Without regard to fault, you only have to
prove that an injury or damage occurs because of the activities
, ex. explosive or blasting operations
Assumption of responsibility for liability of another - CORRECT ANSWER✅✅✅-hold
harmless or indemnity agreements
ex. lessor-lessee, owner-contractor, contractor-subcontractor
hold harmless - CORRECT ANSWER✅✅✅An indemnity clause that provides that both
parties agree to defend and/or compensate the other party for asserted claims against, or liability
damages incurred by, the other party due to the acts or omissions of the first party.
statute - CORRECT ANSWER✅✅✅-override common law
ex. work comp statutes, dram shop, environmental protection statutes
Direct liability - CORRECT ANSWER✅✅✅Results from the conduct of a person or
organization that is responsible for injury or property damage to another
ex. A store fails to clean up a spill, and someone slips
Vicarious Liability - CORRECT ANSWER✅✅✅Liability is transferred from one party to
the other. Sometimes the person or organization is not actively involved in the conduct that
causes injury or damage
-Employer/Employee
-Owner/Manager
General Damages - CORRECT ANSWER✅✅✅Subjective dollar amounts that cover
intangible losses
ex. pain and suffering
Special damages - CORRECT ANSWER✅✅✅Specific dollar amounts that cover specific
costs
QUESTIONS SOLVED ACCURATELY
Legal Liability - CORRECT ANSWER✅✅✅Responsibility/Obligation to others
Tort Liability - CORRECT ANSWER✅✅✅A civil legal wrong against another, the courts
often assess monetary damages
Negligence - CORRECT ANSWER✅✅✅Failure to act as a reasonable person would under
the same circumstances
4 parts of negligence - CORRECT ANSWER✅✅✅1. Duty owed
2. Breach of duty
3. Damages
4. Proximate cause
Intentional Tort - CORRECT ANSWER✅✅✅Expressly or implicitly deemed to have
possessed intent or purpose
Strict Liability - CORRECT ANSWER✅✅✅Applied in product liability suits in which a
manufacturer, seller is liable for any and all defective products that threaten a consumers safety
No proximate cause is needed, you only need to prove that the product that caused damage was
defective
ex. large man gets hurt using a ladder that was supposed to support someone who weighed less
Absolute liability - CORRECT ANSWER✅✅✅Without regard to fault, you only have to
prove that an injury or damage occurs because of the activities
, ex. explosive or blasting operations
Assumption of responsibility for liability of another - CORRECT ANSWER✅✅✅-hold
harmless or indemnity agreements
ex. lessor-lessee, owner-contractor, contractor-subcontractor
hold harmless - CORRECT ANSWER✅✅✅An indemnity clause that provides that both
parties agree to defend and/or compensate the other party for asserted claims against, or liability
damages incurred by, the other party due to the acts or omissions of the first party.
statute - CORRECT ANSWER✅✅✅-override common law
ex. work comp statutes, dram shop, environmental protection statutes
Direct liability - CORRECT ANSWER✅✅✅Results from the conduct of a person or
organization that is responsible for injury or property damage to another
ex. A store fails to clean up a spill, and someone slips
Vicarious Liability - CORRECT ANSWER✅✅✅Liability is transferred from one party to
the other. Sometimes the person or organization is not actively involved in the conduct that
causes injury or damage
-Employer/Employee
-Owner/Manager
General Damages - CORRECT ANSWER✅✅✅Subjective dollar amounts that cover
intangible losses
ex. pain and suffering
Special damages - CORRECT ANSWER✅✅✅Specific dollar amounts that cover specific
costs
