A legal phrase for someone who can be held liable for a specific conduct or omission because of
a related statute that is not subject to interpretation is statutory responsibility. This is a broad
phrase that may be used to a wide range of fields, not simply finance. It can refer to real estate
deals, stockholder duties, or board member activity in the financial realm.
Understanding Statutory Liability
Businesses must follow a slew of local, state, and federal rules and regulations. Accidental
violations of the law might expose a corporation to litigation costs, compensatory damages, and
Companies can be held liable under statutory responsibility if they are proven to be in violation
of laws governing a range of commercial operations. These include (but are not limited to)
environmental, workplace safety, advertising, licencing and permissions, zoning limitations, and
consumer privacy laws and regulations.
While most businesses will want to avoid breaching the law, given the number of rules to follow
and the need to stay current as regulations change, it may be difficult. Laws governing business
can be unclear and open to numerous interpretations. As a result, many businesses retain
business attorneys to assist them in avoiding circumstances that may result in statutory liability.
Statutory Liability Types
A company's or an individual's legal duties might include a variety of various sorts of statutory
liabilities. Here are a couple of such instances.
Professional liability: If it is determined that a firm that provides professional services (such as
accountants, financial advisers, or attorneys) offered inadequate or incorrect advice or services,
the company may be held accountable.
Employee benefits liability: Businesses may be held liable if they fail to comply with federal
regulations governing employee benefits such as health insurance.
Companies can be held liable for property damage and medical expenditures if a corporate
vehicle is involved in an accident.
Companies that break media or advertising regulations may face litigation brought on behalf of
the person that has been harmed. A lawsuit for copyright infringement is one example of this.
Medical malpractice liability: If a provider of healthcare services causes injury to a patient as a
result of an omission or negligent conduct, they may be held liable for malpractice.
Statutory Liability Examples
Businesses in New Zealand and Australia frequently buy statutory liability insurance to protect
themselves from the fines, penalties, and legal expenses that might come from an unintentional
violation of the law. Occupational health and safety legislation, environmental laws, and
employment laws are just a few examples.
Regulatory investigations or court actions launched by regulatory agencies for suspected
statutory violations expose all firms in all industries to possible liabilities. Liabilities arising from
accidental infringement of a variety of New Zealand laws can be covered by statutory liability
plans. The following are a few of the statutes:
Consumer Guarantees Act
Fair Trading Act
Health and Safety in Employment Act 1992 and amendments