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A Salesperson Contacted the Risk Manager to Report Substantial Damage

Question 38

Multiple Choice

A salesperson contacted the risk manager to report substantial damage to a customer's production line due to malfunction of equipment purchased 12 months earlier.Why was a lawyer was not contacted and advised of the event directly by the salesperson?


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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