Taylor Tobacco Company is concerned that the company may be held liabl

Taylor Tobacco Company is concerned that the company may be held liable in a court of law and ordered to pay a large damage award to a smoker harmed by the company’s cigarettes.

The characteristics of the judicial system that increase the frequency and severity of loss are known as
A) moral hazard.
B) particular risk.
C) speculative risk.
D) legal hazard.

ANSWER

Answer: D