Which of the Following Best Practices for Managing Legal Risk

question 62

Multiple Choice

Which of the following best practices for managing legal risk may also result if a producer establishes an informed and properly responsive customer relations process?

• A) early warning system regarding flawed design and production techniques
• B) directives targeted at providing a maximum selling price
• C) insurance coverage to address the majority of expected risks
• D) employees will understand the implications of contractual terms

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjuries.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment in the partnership and does not actively manage the business.

Sue

A legal action where an individual or entity brings a lawsuit against another in a court of law.

Certificate of Limited Partnership

A legal document that formalizes the establishment of a limited partnership and outlines its terms.