Introductory Business Law CLEP Exam 2026 – Your All-in-One Guide to Master the Test!

Question: 1 / 400

What type of legal action is permitted when a person or business has suffered a loss because of someone else's negligence?

Breach of Contract

Class Action

Declaratory Judgment

Tort Liquidation

Tort Liquidation refers to a civil legal action in which a person or business seeks compensation for losses suffered due to someone else's negligence. This type of legal action is based on the concept of tort law, which involves seeking damages for harm caused by the actions or inactions of another party. Breach of Contract may be an option when there is a valid contract in place and one party fails to fulfill their obligations, but it is not applicable in cases of negligence. Class Action refers to a type of legal action where a group of people with a common complaint file a lawsuit together, which may not be suitable for individual cases of negligence. Declaratory Judgment is a legal ruling that clarifies the rights and obligations under a contract or law, and does not involve seeking compensation for losses.

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