Introductory Business Law CLEP Prep Practice Exam

What type of lawsuit is usually brought against a corporation?

1. Negligence

2. Fraud

3. Breach of contract

4. All of the above

The correct answer is: All of the above

While it is possible for a corporation to be sued for negligence, fraud, or breach of contract, there can be other types of lawsuits as well. The question is asking for the most common type of lawsuit brought against a corporation, and that is usually a combination of all of the above. Out of the given options, D is the best fit as it covers the majority of lawsuits brought against corporations. A corporation can be sued for negligence if they fail to provide a reasonable standard of care, for fraud if they make false or misleading statements to stakeholders, and for breach of contract if they violate the terms of a legal contract. Hence, D is the most inclusive and accurate answer.