Introductory Business Law CLEP Prep Practice Exam

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

  1. To protect lenders from legal liability

  2. To protect sellers from legal liability

  3. To protect buyers from legal liability

  4. 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.

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