Real Estate Council of Alberta Fundamentals Practice Exam

What is civil liability primarily concerned with?

1. Legal consequences of criminal actions

2. Private legal actions between disputing parties

3. Regulatory compliance within financial institutions

4. Creation of new laws regarding personal information

The correct answer is: Private legal actions between disputing parties

Civil liability is primarily concerned with private legal actions between disputing parties. This area of law addresses situations where one party's actions cause harm or loss to another, leading to the possibility of a legal remedy. The focus is on resolving disputes through compensation or restitution rather than through punitive measures, which are typically associated with criminal law. In civil liability cases, the injured party seeks to recover damages from the party deemed responsible for the harm, which can involve various contexts such as contracts, torts, and personal injury. The other options focus on different aspects of law and regulation. The legal consequences of criminal actions pertain to criminal law, which deals with offenses against the state or society at large. Regulatory compliance within financial institutions involves adherence to laws governing financial practices and is not specifically about private disputes. Lastly, the creation of new laws regarding personal information falls under legislative processes and data protection laws, rather than the resolution of private claims or liabilities. Thus, the primary concern of civil liability is centered on the relationships and disputes between private individuals or entities.