Business Exposures and Liability Quiz

Which of the following is NOT a business exposure for Clara's beauty parlour?

• Hair specialist on the ground floor

• Nail specialist on the top floor

• Parking lot for clients

• Providing services to clients' homes

What coverage is required to cover the risk of accidents involving employees' cars?

• Product liability coverage

• Business interruption coverage

• Commercial auto insurance

• General liability insurance

Which defense can be used against product liability?

• Assumption of risk

• Negligence

• Strict liability

• Breach of contract

What is the learned intermediary rule?

• A rule that limits the liability of manufacturers

• A rule that requires manufacturers to provide warnings to consumers

• A rule that holds intermediaries responsible for product defects

• A rule that protects manufacturers from liability if a product is used incorrectly

What is joint and several liability?

• Liability shared equally among all parties involved

• Liability that can be divided based on fault

• Liability that can be imposed on one party or all parties involved

• Liability that can be transferred to a third party

What is foreseeability?

• The ability to predict future events

• The likelihood of harm occurring

• The duty to exercise reasonable care to prevent harm

• The requirement to warn of potential dangers

Rope entertainment park, Tim and John are sued by Amy. Amy who fell from ladder was hit in the head by Tim who was following the ladder path. John then stepped on her hands which lead to a fracture. Which defenses can the defendants in the Rope Entertainment Park case use?

• Voluntary Assumption of risk

• Contributory negligence

• Comparative negligence

• All of the above