Although the Basis for Liability in the Context of Tort

question 40

Multiple Choice

Although the basis for liability in the context of tort law is "fault",compensation based solely on fault has disadvantages including

• A)people will be less careful if they must pay for the consequences of their carelessness.
• B)accident victims who cannot establish fault on the part of some other person go uncompensated.
• C)there is no deterrent effect in a fault-based system.
• D)vicarious liability is based solely on fault.
• E)claims for punitive damages do not require any proof of fault.

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Definitions:

HDC

Stands for Holder in Due Course, referring to a party that has acquired a negotiable instrument in good faith and for value, thus having certain rights above the original parties.

Payee

The individual or entity to whom a payment is to be made or who receives the payment.

Note

A written record or reminder, often used in contracts or financial transactions to denote terms, obligations, or agreements.

Maker

A maker is the party that issues or creates a financial instrument, such as a check or promissory note, committing themselves to pay a specified amount of money to a designated beneficiary.