Which term refers to liability based on state laws governing activities such as sale of liquor and workers' compensation claims?

Which term refers to liability based on state laws governing activities such as sale of liquor and workers' compensation claims?

• A. Tort
• B. Suit
• C. Statutory Liability
• D. Volunteer Worker

Answer: (C)

Statutory liability refers to obligations that arise from statutes enacted by the state to regulate certain activities. In this case, state laws governing the sale of liquor and workers’ compensation create liability through the statute itself. For liquor, many jurisdictions use statutes (sometimes called dram shop laws) that hold sellers accountable for certain harms tied to alcohol. For workers’ compensation, the employer’s obligation to provide benefits comes from a state statute, with the system designed to be the exclusive remedy in many situations. This type of liability is imposed by law regardless of fault, which distinguishes it from fault-based tort claims. Tort describes a civil wrong usually requiring fault or negligence; a suit is simply the legal action brought; a volunteer worker is unrelated to the concept.

Statutory liability refers to obligations that arise from statutes enacted by the state to regulate certain activities. In this case, state laws governing the sale of liquor and workers’ compensation create liability through the statute itself. For liquor, many jurisdictions use statutes (sometimes called dram shop laws) that hold sellers accountable for certain harms tied to alcohol. For workers’ compensation, the employer’s obligation to provide benefits comes from a state statute, with the system designed to be the exclusive remedy in many situations. This type of liability is imposed by law regardless of fault, which distinguishes it from fault-based tort claims.

Tort describes a civil wrong usually requiring fault or negligence; a suit is simply the legal action brought; a volunteer worker is unrelated to the concept.