Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the purpose of the Notice of Non-Liability?

To protect lenders from legal liability
To protect sellers from legal liability
To protect buyers from legal liability
To protect manufacturers from legal liability

The correct answer is: To protect sellers from legal liability

The purpose of the Notice of Non-Liability is to protect sellers from legal liability. This document is often utilized in real estate transactions to shift liability from the seller to the buyer. Option A is incorrect because lenders are not typically involved in the transfer of liability in real estate transactions. Option C is incorrect because the purpose of this document is to protect the seller, not the buyer. Option D is incorrect because manufacturers are not typically involved in real estate transactions and therefore do not need protection from legal liability in this context.