Premises - Answer: Arises out of injury or property damage because of the ownership, maintenance, or use of a specific location
Operations - Answer: Arises out of exposures that typically occur away from the premises of the business
Products - Answer: Caused by defects in product design, m...
, Premises - Answer: Arises out of injury or property damage because of the ownership, maintenance, or
use of a specific location
Operations - Answer: Arises out of exposures that typically occur away from the premises of the
business
Products - Answer: Caused by defects in product design, manufacturing, or the failure to sufficiently
warn or explain the safe use of the product to consumers
Environmental Impairment - Answer: Occurs when the operations or products of a business creates
pollutants that may cause harm
Bailee - Answer: Exists as a direct result of possessing another person's property
Identifying liability exposures is important when selecting the type(s) of liability insurance a business
may need. If a customer gets injured at a retail store when a store display falls on them, the store can be
held liable. What category of liability exposure is this? Explain your answer. - Answer: This situation
represents a premises liability exposure, as it arises out of the use of the retail store.
Name the four elements that must be present in order for negligence to occur: - Answer: A duty owed
to others
2. A breach of that duty owed
3. Injury or damages 4. A proximate cause between the breach of duty and the damages
A business keeps a tiger in a cage on their property as a customer attraction. One day, the tiger escapes
its cage and injures several people. Even though the store owner followed the safety regulations for
dangerous animals, he could still be held liable. What type of legal liability is this? Explain your answer. -
Answer: This situation represents strict/absolute liability, as the tiger an inherently dangerous activity or
exposure. Strict liability can be imposed regardless of the degree of negligence or care exercised by the
owner.
Luigi's Pizza incentivizes their drivers to complete all deliveries in under 45 minutes. One of their drivers,
Jeff, caused an accident by running a red light. The injured party sued Luigi's Pizza and the court has
ordered Luigi to pay the following damages: • $120,000 towards the plaintiff's medical expenses, vehicle
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