What term refers to liability established by legislation or regulation?

What term refers to liability established by legislation or regulation?

• A. Recovery
• B. Non-waiver agreement
• C. Negligence
• D. Regulatory or statutory liability

Answer: (D)

Liability created by laws and regulations is called regulatory or statutory liability. This means the obligation to compensate or face penalties is imposed by statutes or regulatory rules, not earned through fault or a contractual promise. It applies even if no one was negligent, as long as the rule is violated. Examples include fines for environmental breaches or safety violations under workplace regulations. The other terms describe different concepts—recovery is about obtaining compensation, negligence involves failing to exercise reasonable care, and a non-waiver agreement is a contract clause—so they don’t capture how this liability is established.

Liability created by laws and regulations is called regulatory or statutory liability. This means the obligation to compensate or face penalties is imposed by statutes or regulatory rules, not earned through fault or a contractual promise. It applies even if no one was negligent, as long as the rule is violated. Examples include fines for environmental breaches or safety violations under workplace regulations. The other terms describe different concepts—recovery is about obtaining compensation, negligence involves failing to exercise reasonable care, and a non-waiver agreement is a contract clause—so they don’t capture how this liability is established.