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!

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What term is used to describe the duty of a party to exercise reasonable care to prevent foreseeable damage?

Equity Principle
Duty of Care
Vicarious Liability
Contingency Fee

The correct answer is: Duty of Care

Duty of Care refers to the legal obligation of a party to exercise reasonable care to prevent foreseeable damage. This includes taking necessary precautions and measures to avoid causing harm to others. Option A, Equity Principle, is incorrect because it refers to the concept of fairness and equality in the distribution of resources, it is not directly related to the duty of care. Option C, Vicarious Liability, is incorrect because it refers to the legal responsibility of a party for the actions of another person, such as an employer for the actions of their employees. It is not specifically related to the duty of care. Option D, Contingency Fee, is incorrect because it refers to a type of payment arrangement between a lawyer and their client, where the lawyer's fee is based on a percentage of the client's legal settlement. It is not related to the concept of duty of care.