Risk Management for Enterprises and Individuals (open textbook), section 12.03: Major Sources of Liability
Edition and licensing notes
Publisher. LibreTexts Business (biz.libretexts.org), from the open textbook of the University of Minnesota Libraries / Saylor (Baranoff, Brockett and Kahane)
Edition. CC BY-NC-SA 3.0 open textbook, ca. 2009-2012; page as served 2026-09-29
Status. Creative Commons Attribution-NonCommercial-ShareAlike 3.0 (LibreTexts / University of Minnesota Libraries).
What this document is
Risk Management for Enterprises and Individuals (open textbook), section 12.03: Major Sources of Liability is a reference published by LibreTexts Business (biz.libretexts.org), from the open textbook of the University of Minnesota Libraries / Saylor (Baranoff, Brockett and Kahane). It is one of the documents that insurance license exam questions are written from, including property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.
Sections cited in practice questions
Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.
- Risk Management for Enterprises and Individuals, section 12.3, "Automobile" (vicarious and direct liability)
“On the other hand, if Smith is not a competent driver, you may be held directly liable for putting a dangerous instrument in his hands. In such a case, it is your own negligence for which you are responsible.”
- Risk Management for Enterprises and Individuals, section 12.3, "Strict Liability"
“Thus, the manufacturer and/or seller of the product may be held liable even if “all possible care in the preparation and sale” of the product was undertaken, and even if the injured party was not the buyer.”
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