Question

Which of the following liability exposures is most likely for a small specialty clothing retail boutique?

A) Completed operations liabilty exposure
B) Premises liability exposure
C) Operations liability exposure
D) Product liability exposure

Answer 1

The most likely liability exposure is product liability. This refers to the legal responsibility if any of the boutique's products cause harm or injury to a customer.

Step-by-step explanation:

The most likely liability exposure for a small specialty clothing retail boutique is Product liability exposure. This refers to the legal responsibility that the boutique may have if any of its products cause harm or injury to a customer. For example, if a customer purchases a dress from the boutique and the dress has a manufacturing defect that causes an injury, the boutique may be held liable.

Although the other options like Completed operations liability exposure, Premises liability exposure, and Operations liability exposure are also important for businesses, product liability exposure is particularly relevant for a clothing boutique as it involves the potential harm caused by the products they sell. It is crucial for the boutique to ensure the safety and quality of their merchandise to mitigate this risk.