A store manager of a large grocery chain makes a verbal offer to compensate a customer for a serious hand injury that requires medical attention.Even though the store manager's offer is refused,he is seriously reprimanded by the vice president of the legal risk department.What was the vice president's most significant concern?
A) to pay as small a settlement as possible
B) to clarify the situation before entering negotiations
C) reaching a fair and acceptable outcome
D) negotiating could imperil risk insurance coverage

Question

Quizplus · Accepted Answer

The vice president's most significant concern likely revolves around the potential for the store manager's actions (negotiating or making an offer) to imperil the company's risk insurance coverage. Unauthorized negotiations or admissions of liability can affect the terms and conditions of insurance policies, potentially leading to coverage issues or increased premiums.

A Store Manager of a Large Grocery Chain Makes a Verbal