LIABILITY BASICS – PRACTICE QUESTIONS (Texas P&C Exam)

Question 1

What is liability?

Answer 1

Liability is the legal responsibility for one’s actions or omissions that cause harm to another party.

Question 2

True or False: Liability only applies to intentional acts.

Answer 2

False

Question 3

What is negligence?

Answer 3

Negligence is the failure to exercise reasonable care, resulting in damage or injury to another party.

Question 4

Fill in the blank: A tort is a civil wrong that causes harm or loss to another and can result in __________.

Answer 4

liability

Question 5

Which of the following is a defense against negligence? A) Contributory negligence B) Strict liability C) Vicarious liability

Answer 5

A) Contributory negligence

Question 6

What is strict liability?

Answer 6

Strict liability is a legal doctrine holding a party responsible for their actions regardless of fault or intent.

Question 7

True or False: Vicarious liability holds an employer responsible for the negligent actions of an employee.

Answer 7

True

Question 8

What are the four elements of negligence?

Answer 8

Duty, breach, causation, and damages.

Question 9

Fill in the blank: __________ liability applies to actions that are inherently dangerous.

Answer 9

Strict

Question 10

What is the purpose of liability insurance?

Answer 10

To protect individuals and businesses from financial loss due to liability claims.

Question 11

Which term describes a legal obligation to compensate for harm caused?

Answer 11

Liability

Question 12

True or False: A waiver can completely eliminate liability for negligence.

Answer 12

False

Question 13

What does ‘proximate cause’ refer to in liability cases?

Answer 13

The primary cause that directly leads to the injury or damage.

Question 14

What is the difference between compensatory and punitive damages?

Answer 14

Compensatory damages are awarded to cover actual losses, while punitive damages are meant to punish the wrongdoer.

Question 15

Fill in the blank: __________ negligence occurs when the injured party’s own negligence contributed to their injuries.

Answer 15

Comparative

Question 16

What is the statute of limitations for filing a personal injury lawsuit in Texas?

Answer 16

Two years from the date of the injury.

Question 17

True or False: An act of God can be a defense against liability.

Answer 17

True

Question 18

Which of the following is NOT a type of tort? A) Intentional tort B) Negligent tort C) Criminal tort

Answer 18

C) Criminal tort

Question 19

What is the term for a party that is held liable for another’s actions?

Answer 19

Vicarious liability

Question 20

Fill in the blank: In Texas, __________ liability is often applied in cases involving defective products.

Answer 20

strict

Question 21

What is ‘duty of care’?

Answer 21

The legal obligation to avoid causing harm to others.

Question 22

True or False: All states have the same laws regarding liability.

Answer 22

False

Question 23

What does ‘negligent infliction of emotional distress’ refer to?

Answer 23

A claim for damages due to severe emotional trauma caused by another’s negligence.

Question 24

Fill in the blank: __________ is a legal term for the failure to act as a reasonably prudent person would.

Answer 24

Negligence

Question 25

What is an example of an intentional tort?

Answer 25

Assault or defamation.

Question 26

True or False: Liability can exist even in the absence of negligence.

Answer 26

True

Question 27

What is 'joint and several liability'?

Answer 27

A legal concept where multiple parties can be held individually responsible for the entire amount of damages.

Question 28

Fill in the blank: __________ damages are designed to deter wrongful conduct.

Answer 28

Punitive

Question 29

What is the role of a liability waiver?

Answer 29

To limit or eliminate liability for future claims.

Question 30

True or False: A minor can be held liable for negligence in Texas.

Answer 30

True, but liability may be limited.

Question 31

What is 'attractive nuisance'?

Answer 31

A legal doctrine that holds property owners liable for injuries to children who are attracted to hazardous conditions.

Question 32

Fill in the blank: The __________ rule states that a party cannot recover damages if they are found to be more than 50% at fault.

Answer 32

modified comparative negligence

Question 33

What is the purpose of liability caps?

Answer 33

To limit the amount of damages that can be awarded in a lawsuit.

Question 34

True or False: Insurance policies can exclude certain types of liability.

Answer 34

True

Question 35

What is 'breach of duty'?

Answer 35

The failure to meet the standard of care owed to another party.

Question 36

Fill in the blank: __________ liability applies regardless of fault in cases involving certain activities, like using explosives.

Answer 36

Strict

Question 37

What is the 'reasonable person standard'?

Answer 37

A legal standard that compares a person's actions to those of a hypothetical reasonable person.

Question 38

True or False: Contributory negligence completely bars recovery for the injured party.

Answer 38

True in some jurisdictions.

Question 39

What does 'express assumption of risk' mean?

Answer 39

An agreement in which a person acknowledges the risks involved in an activity.

Question 40

Fill in the blank: __________ liability arises from the actions of an employee performed within the scope of employment.

Answer 40

Vicarious

Question 41

What is the primary objective of tort law?

Answer 41

To provide relief to victims and deter harmful conduct.