direct liability

direct liability definition - business

direct liability

A legal obligation imposed on an individual who is directly responsible for negligence that results in property damage or bodily injury. For example, an executive who destroys evidence relative to a lawsuit brought by an employee is held liable. Compare indirect liability.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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