Which of the Following Statements About Liability Losses Is True

question 3

Multiple Choice

Which of the following statements about liability losses is true?

• A) They arise from two sources: the obligation to pay legal damages, and the resulting bad publicity.
• B) The obligation to pay legal damages is always more expensive than the cost of defense.
• C) Defense costs can be expensive, unless the court finds that the plaintiff's claims are groundless.
• D) None of the above is true.

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Definitions:

Spanish Expeditions

Exploratory and military expeditions led by Spain from the 15th to the 17th century, resulting in the expansion of Spanish territory and influence, especially in the Americas.

Manpower

The supply of people available for work or military service.

Negotiations

The process of discussing and arriving at a mutual agreement between parties with differing interests.

Africa Slave Trade

The transatlantic slave trade involved the transportation of enslaved African people, mainly to the Americas, from the 16th to the 19th century.