Which of the Following Risks Cannot Be Hedged by an Insurance

question 4

Multiple Choice

Which of the following risks cannot be hedged by an insurance?

• A)Exports damaged during shipment
• B)Theft during movement of goods
• C)An electrical fire at a warehouse
• D)Decreased sales resulting from poor salesmanship

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Definitions:

Parol Evidence Rule

a legal principle that prevents the parties of a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary contractual terms.

Main Purpose

The primary objective or aim intended to be achieved by something or someone.

Collateral Contract

A secondary agreement made in addition to a primary contract, which induces a party to enter into the primary contract.

Leading Object Rule

A legal principle in contract law used to determine whether a promise is enforceable under the Statute of Frauds.