LAW 122- Final Exam Guide - Comprehensive Notes for the exam ( 240 pages long!)
30 Nov 2017
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Chapter #1: the law can affect a business both positively and negatively. It often prohibits actions that 41) otherwise would be possible. However, it sometimes permits parties to do something that they could not otherwise do. True: betta inc has recently discovered that a defect in one of its products poses a risk of injury to 42) consumers. Its only option, from a risk management perspective, is to eliminate the risk of liability by removing the product from the market. False: as described in the text, the four forms of risk management are risk avoidance, risk elimination, 43) risk transfer, and risk acceptance. Fasle: sabeka inc has discovered that one of its products may cause consumers to suffer a certain form of 44) property damage. In response to that risk, the company has written an exclusion clause into its sales contracts. In doing so, it has adopted a form of risk management known as risk shifting.
