Which of the following is set down in statute as a liability that exists without any need to prove fault?

Which of the following is set down in statute as a liability that exists without any need to prove fault?
A . Strict liability
B. Current liability
C. Contingent liability
D. Non-current liability

View Answer

Answer: A

Explanation:

– Strict liability, sometimes called absolute liability, is the legal responsibility for damages, or injury, even if the person found strictly liable was not at fault or negligent. Strict liability has been applied to certain activities in tort, such as holding an employer absolutely liable for the torts of her employees, but today it is most commonly associated with defectively manufactured products. In addition, for reasons of public policy, certain activities may be conducted only if the person conducting them is willing to insure others against the harm that results from the risks the activities create.

– Current liabilities are a company’s short-term financial obligations that are due within one year or within a normal operating cycle.

– Non-current liabilities, also called long-term liabilities or long-term debts, are long-term financial obligations listed on a company’s balance sheet

– Contingent liability is a potential liability that may occur, depending on the outcome of an

uncertain future event.

Reference: CIPS study guide page 148

LO 3, AC 3.2