What term refers to legal responsibility for an activity or decision that breaks the law?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

The term that refers to legal responsibility for an activity or decision that breaks the law is legal liability. This concept encapsulates the idea that individuals or organizations can be held accountable in a court of law for any actions that violate laws or regulations, resulting in consequences such as fines, penalties, or other forms of legal action. Legal liability serves as a crucial mechanism for promoting adherence to laws and ensuring that those who infringe upon legal standards face repercussions.

In contrast, contractual obligation pertains to duties defined by a contract between parties, which may not necessarily involve any illegal conduct but rather the terms agreed upon. Ethical responsibility relates to the moral obligations one may have, which may not always align with legal standards. Regulatory compliance refers explicitly to adherence to laws and regulations relevant to a particular industry or activity, but being in compliance does not shield one from legal liability if a violation occurs. Legal liability directly addresses the consequences of legal violations, making it the appropriate term in this context.

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