Which Kind(s)of Liability Can Be Imposed Only If a Party

question 21

Multiple Choice

Which kind(s) of liability can be imposed only if a party has signed an instrument?

• A) warranty liability only
• B) contract liability only
• C) both contract liability and warranty liability
• D) neither contract liability nor warranty

---

Definitions:

Incentives

Rewards or penalties that motivate individuals to perform an action or avoid it.

Economic Analysis

A systematic approach to determining the optimal use of scarce resources, involving comparison of two or more alternatives in achieving specific objectives under the given assumptions.

Personal Benefits

Advantages or gains received personally, often in the context of employment or social welfare.

Selfish Motives

The driving force behind actions that prioritize personal gain over the welfare of others.