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

Question

Quizplus · Accepted Answer

Legal hazard refers to the characteristics of the judicial system that increase the frequency and severity of losses, including factors such as bias, unpredictability, and judicial activism. This is the most appropriate option given the context of Taylor Tobacco Company's concern about potential liability in court.

Taylor Tobacco Company Is Concerned That the Company May Be