A Risk-Benefit Analysis

question 10

Multiple Choice

A risk-benefit analysis

• A)requires a finding of breach of duty for substantial harm
• B)cannot apply in a state that uses the Andrews test for duty
• C)is also called proximate cause
• D)determines whether the risks outweigh the benefits

---

Definitions:

Principal

In a legal context, the principal is the party who grants authority to an agent to act on their behalf in legal or financial matters.

Apparent Authority

A situation where someone appears to have the power to act on behalf of another (such as an employer), even if they do not have actual authority.

Ratify

To formally approve or confirm an agreement or act, making it officially valid.

Breach

The failure to perform obligations as stipulated in a contract, leading to potential legal consequences.