Moral Hazard Tends to Change

question 59

Multiple Choice

Moral hazard tends to change:

• A) behavior, not opportunity.
• B) behavior, not morals.
• C) opportunity, not behavior.
• D) morals, not behavior.

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Definitions:

Remedies

Legal measures or actions available to a party to enforce a right or redress a harm.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly intended to deceive the other party, leading to a contract or agreement being voidable.

Innocent Misrepresentation

A false statement made honestly and without the intent to deceive, which may lead to the voiding of a contract if relied upon by the other party.

Rescission

The cancellation of a contract, returning all involved parties to their state before the contract was made.