The Three Main Sources of Potential Legal Liabilities for the Buyer

question 91

Multiple Choice

The three main sources of potential legal liabilities for the buyer of an existing business include all but which of the following?

• A)Problems with the physical premises,such as hazardous materials
• B)Product liability claims
• C)Labor problems and disputes
• D)Errors and omissions

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Definitions:

Actor-Observer Effect

A psychological phenomenon in which people tend to attribute their own actions to situational factors while attributing other people's actions to their internal characteristics.

Fundamental Attribution Error

The tendency to explain someone's behavior based on internal factors, such as personality or disposition, while underestimating external factors.

Locus of Causality

The perceived source of control over events in an individual's life, internal or external to oneself.

Counterfactual Thinking

The psychological process of imagining alternative outcomes to events that have already occurred, often starting with "what if" questions.