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A Salesperson Contacts the Risk Manager to Report Substantial Damage

Question 22

Multiple Choice

A salesperson contacts the risk manager to report substantial damage to a customer's production line due to the malfunction of equipment purchased 12 months earlier. Why doesn't the salesperson contact a lawyer instead?


A) The limitation of liability in the contract was not known.
B) Sales departments are not part of risk management.
C) The customer has not commenced legal action yet.
D) Authority to contact legal counsel is restricted.

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